Escrow & Title
A title search in NC reveals a judgment lien against the seller. Which of the following is TRUE?
AThe buyer takes the property free of the lien since they are innocent
BThe lien must be satisfied or released before or at closing to convey clear title✓ Correct
CThe lien automatically expires at closing
DThe broker is responsible for paying the lien on behalf of the seller
Explanation
A judgment lien attaches to all real property the debtor owns in the county where docketed. It must be paid off or released before a clean title can be conveyed to the buyer, typically handled through closing proceeds.
Related North Carolina Escrow & Title Questions
- The 'settlement statement' (Closing Disclosure) at a NC closing shows:
- In NC, a 'conveyance in trust' (placing property in a trust) requires a deed to be prepared and:
- The trustee in a North Carolina deed of trust holds:
- In a NC transaction, the 'earnest money deposit' vs. the 'due diligence fee' — which is refundable if the buyer terminates during due diligence?
- In NC, recording a deed in the Register of Deeds provides:
- An abstract of title in North Carolina is:
- The chain of title in North Carolina refers to:
- At a NC residential closing, who typically prepares the deed?
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →