Escrow & Title
In New York, an 'encroachment' discovered during a title search typically results in:
AAutomatic cancellation of the sale
BA title exception or a requirement to cure the encroachment (through a boundary line agreement or survey correction) before insurable title can be issued✓ Correct
CA reduction in the purchase price only
DForfeiture of the earnest money deposit
Explanation
When an encroachment is discovered (e.g., a fence or building extending onto a neighbor's property), the title company typically raises it as an exception to coverage or as a requirement to cure. The parties must address it through a boundary line agreement, survey correction, or easement.
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