Property Ownership
A North Dakota property with a 'cloud on title' discovered before closing should ideally be resolved by:
AHaving the buyer accept the property with the cloud
BFiling a quiet title action or obtaining a release to clear the cloud before closing✓ Correct
CIncreasing the purchase price to compensate the buyer
DIgnoring it if it is older than 10 years
Explanation
A cloud on title should be resolved before closing through a quiet title action (court proceedings), a release from the claimant, a corrective deed, or other legal means to ensure the buyer receives clear, marketable title.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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