Escrow & Title
In NC, a 'discharge of mortgage' or 'cancellation of deed of trust' is important at closing because it:
ACreates the new deed
BRemoves the seller's existing lien from public record, providing the buyer with clean title✓ Correct
CIssues the title insurance policy
DRecords the buyer's new deed of trust
Explanation
Cancelling the seller's existing deed of trust removes the lien from the property's title, ensuring the buyer receives clear title free from the seller's financing obligations.
Related North Carolina Escrow & Title Questions
- In NC, the 'chain of title' refers to:
- Under NC law, the priority of a purchase money deed of trust (given at time of sale) over other liens is established by:
- In North Carolina, real estate closings are typically conducted by:
- The trustee in a North Carolina deed of trust holds:
- Under NC law, a deed of trust in a non-judicial (power of sale) foreclosure must be processed through:
- In a NC residential transaction, who typically pays the owner's title insurance premium?
- A 'tax certificate' issued in NC at a tax sale represents:
- In NC, 'gap coverage' in a title insurance policy protects against:
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