Escrow & Title
In New Mexico, a 'preliminary title report' is issued by the title company before closing. If a title defect is found, the typical remedy is to:
AProceed with closing and hope the defect clears itself
BCorrect or eliminate the defect before closing — by obtaining releases, quitclaim deeds, court orders, or other curative instruments✓ Correct
CCancel the transaction automatically
DFile a claim against the title company
Explanation
Title defects found in the preliminary report must be cured before closing. Curative measures include obtaining releases from lienholders, quitclaim deeds from potential claimants, court orders (quiet title actions), or corrective deeds — depending on the nature of the defect.
Related New Mexico Escrow & Title Questions
- In New Mexico, which document conveys legal title to real property from seller to buyer?
- A general warranty deed provides the greatest protection to the buyer because the grantor:
- In New Mexico, a 'quiet title action' is a court proceeding used to:
- A lis pendens recorded against a New Mexico property notifies potential buyers that:
- A chain of title refers to:
- In New Mexico, what is 'constructive notice' as it relates to recording documents?
- A lender's title insurance policy in New Mexico protects:
- In New Mexico, which instrument releases a deed of trust lien after the mortgage is paid in full?
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →