Escrow & Title

In NC, a buyer who discovers after closing that the seller did not have clear title to the property that was conveyed may seek recovery under:

AThe seller's homeowners insurance
BTheir owner's title insurance policy or a lawsuit against the seller under deed warranties✓ Correct
CThe NC Recovery Fund only
DThe lender's title insurance policy

Explanation

A buyer with title problems may seek recovery under their owner's title insurance policy (if obtained) or through a lawsuit against the seller based on warranty covenants in the deed.

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