Escrow & Title
Under NC law, when a real estate transaction closes and the seller has a mortgage, the closing attorney must:
AAllow the seller to continue making payments on the old loan
BEnsure the existing mortgage is paid off from the proceeds and the deed of trust is cancelled✓ Correct
CTransfer the existing mortgage to the buyer
DHold the payoff funds until the next tax deadline
Explanation
At closing, the attorney disburses funds to pay off the seller's existing mortgage, records the payoff, and ensures the lien is released — giving the buyer clean title.
Related North Carolina Escrow & Title Questions
- In NC, the difference between 'buyer-funded' and 'seller-funded' at closing refers to:
- Which of the following is a 'voluntary' lien on real property?
- Which type of deed conveys whatever interest the grantor has, with no warranties?
- In NC, the seller's attorney typically handles which task at closing?
- A lender's title insurance policy in NC protects:
- When NC property taxes are overdue, the county may begin the 'tax foreclosure' process. Before the property can be sold at tax sale, the owner typically has the right to:
- In North Carolina, who typically handles real estate closings?
- An 'easement by necessity' in NC is typically created when:
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