Escrow & Title
A Nebraska mortgage executed by a party who lacks legal capacity (e.g., a legally incapacitated person) is:
AAutomatically valid because it is recorded
BVoid or voidable, potentially invalidating the lender's security interest in the property✓ Correct
CValid if the lender was unaware of the incapacity
DValid for 3 years before it can be challenged
Explanation
Mortgages executed without legal capacity may be void or voidable. Lenders use title insurance and underwriting to identify guardianship issues. A mortgage by an incapacitated person without proper guardianship authority creates title risk.
Related Nebraska Escrow & Title Questions
- Nebraska's grantor-grantee index in the county recorder's office is used to:
- A title abstract in Nebraska is a:
- The purpose of an escrow in a real estate transaction is to:
- Proration of property taxes at closing means:
- Nebraska's recording acts provide a 'race notice' protection meaning:
- Nebraska's doctrine of 'after-acquired title by estoppel' holds that when a grantor conveys property with a warranty but doesn't own it yet:
- In a Nebraska non-judicial foreclosure under a deed of trust, the trustee may sell the property without:
- The chain of title refers to:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →