Escrow & Title
A NH title company discovers an 'open mortgage' from 1985 that was never formally discharged. This creates a problem because:
AThe old mortgage has no effect after 10 years
BThe undischarged mortgage still appears as a lien on title, clouding the current owner's ability to convey clear title✓ Correct
COnly new mortgages can cloud title
DTitle insurance automatically covers all undischarged mortgages
Explanation
An undischarged (open) mortgage—even from decades ago—remains a cloud on title until formally discharged. The seller must obtain a discharge from the lender (or their successor) and record it at the Registry of Deeds before clear title can be conveyed. Title insurance cannot cure an open mortgage without resolving it.
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