Escrow & Title
In NH, when property is sold 'free and clear of all encumbrances,' the seller is typically required to:
AOnly pay off the first mortgage
BSatisfy and discharge all mortgages, liens, and other encumbrances before or at closing to deliver marketable title✓ Correct
CTransfer the encumbrances to the buyer
DProvide a title insurance policy in lieu of clearing encumbrances
Explanation
Delivering 'free and clear' title requires the seller to discharge all mortgages, judgment liens, mechanics' liens, and other encumbrances at or before closing. The purchase price proceeds are typically used to pay off these obligations at closing, with the title company or attorney coordinating the payoffs.
Related New Hampshire Escrow & Title Questions
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- What happens to a buyer's title insurance policy when the property is sold to a new buyer?
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