Escrow & Title

A Mississippi real estate transaction closes and the buyer receives a warranty deed. The buyer later discovers the property has an undisclosed boundary dispute with a neighbor. The buyer's first recourse is likely:

AAgainst the title insurance company if the dispute is a covered title defect✓ Correct
BAgainst the seller under the deed's warranty covenants for failure to convey good title
CAgainst MREC for not preventing the sale
DAgainst the listing agent for failing to disclose

Explanation

The buyer has multiple potential recourses. First, the title insurance policy may cover boundary disputes and title defects — this is often the fastest and most reliable recourse. Second, the seller's warranty covenants in the general warranty deed create personal liability. Third, if the agent knew, there may be misrepresentation claims.

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