Escrow & Title
In Montana, a buyer who purchases property without title insurance and later discovers an undisclosed lien has:
AFull protection under the recording acts
BNo insurance protection and must pursue the seller for breach of deed warranty or pay the lien themselves✓ Correct
CAutomatic relief from the county recorder's office
DProtection under the state warranty fund
Explanation
Without title insurance, a buyer who discovers an undisclosed lien has no insurance coverage. They must either seek recourse against the seller for breach of deed covenants (if a warranty deed was used) or satisfy the lien themselves. Title insurance protects against exactly this risk.
Related Montana Escrow & Title Questions
- In Montana, a 'judgment lien' attaches to real property when:
- Constructive notice is provided by:
- In Montana, a 'title search going back to original patent' means the search:
- A 'cloud on title' refers to:
- In Montana, which of the following would NOT constitute a cloud on title requiring resolution before closing?
- In Montana, when a real estate closing is delayed by a title problem discovered by the title company, the proper course of action is typically to:
- A Montana title company issues a title insurance policy 'subject to survey.' This means the policy:
- In Montana, a 'settlement statement' (HUD-1 or Closing Disclosure) shows all parties to a transaction:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →