Escrow & Title
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:
AProceed to closing and note the title problem on the Closing Disclosure
BExtend the closing date to allow time for the title problem to be resolved, or reduce the closing costs to compensate the buyer✓ Correct
CClose without resolving the issue and let the buyer pursue legal remedies later
DCancel the transaction immediately without any further negotiation
Explanation
When a title problem is discovered pre-closing, the parties typically agree to extend the closing date to allow time for the issue to be resolved (lien satisfaction, quiet title action, corrective deed). Closing with a known unresolved title problem is inadvisable.
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