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:
Why Their owner's title insurance policy or a lawsuit against the seller under deed warranties Is Correct
Answer B: Their owner's title insurance policy or a lawsuit against the seller under deed warranties
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related North Carolina Questions
- An owner's title insurance policy in North Carolina protects:Escrow & Title
- An owner's title insurance policy in NC protects:Escrow & Title
- In NC, 'gap coverage' in a title insurance policy protects against:Escrow & Title
- A NC real estate transaction where the closing attorney discovers the seller's deed was fraudulently obtained should result in:Contracts
- When a NC title insurance company pays a claim on an owner's policy, the insurer receives the right to:Escrow & Title
- A buyer and seller in North Carolina have signed a contract, but closing is delayed because the seller cannot produce clear title. This is an example of:Contracts
- A NC property owner who discovers oil contamination from an old underground storage tank on their property should first:Environmental
- A NC property manager who discovers their client (property owner) has been allowing unauthorized occupants (squatters) to live in a vacant building should:Property Management
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →