Escrow & Title
A New Jersey property is being sold with an open mortgage lien that must be satisfied at closing. Who is responsible for paying off this existing mortgage?
AThe buyer, as a condition of purchase
BThe seller, from the sale proceeds at closing✓ Correct
CThe title company, from its insurance reserve fund
DThe buyer's new lender
Explanation
The seller is responsible for paying off any existing mortgage liens from the sale proceeds at closing. The closing agent (title company or attorney) typically coordinates the payoff.
Related New Jersey Escrow & Title Questions
- An owner's title insurance policy in NJ protects:
- In New Jersey, the recording of a deed in the county clerk's office provides:
- Recording a deed in NJ is important because it:
- A 'chain of title' examination in New Jersey traces the history of:
- In NJ, an owner's title insurance policy protects the policyholder for:
- A NJ property owner who grants a mortgage to a lender is called the:
- A title company's commitment to insure (binder) is issued after:
- Priority of liens in NJ generally follows the rule of:
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