Escrow & Title
A North Dakota title company's preliminary title report (title commitment) shows a judgment lien. Before closing, this lien must be:
AIgnored if it is more than 5 years old
BSatisfied or released, and a lien release recorded, to provide clear title✓ Correct
CTransferred to the buyer
DDisclosed only to the lender, not the buyer
Explanation
A judgment lien encumbers the title and must be paid off and released before the transaction can close with clear title. The title company will require evidence of satisfaction and a recorded release of the lien.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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