Contracts
A NC real estate transaction where the closing attorney discovers the seller's deed was fraudulently obtained should result in:
AProceeding with the closing since the attorney is not responsible for prior fraud
BThe closing being halted and the fraud reported to appropriate authorities✓ Correct
CInsisting the buyer accept the risk
DRecording the deed immediately to establish new title
Explanation
A closing attorney who discovers fraud in the chain of title must halt the closing and take appropriate action. Proceeding with a closing while knowing the deed was fraudulently obtained could expose the attorney to liability.
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