Escrow & Title
A buyer in Oklahoma is purchasing a home where the seller has an existing mortgage with a balance of $180,000. At closing, from the proceeds:
AThe buyer inherits the seller's mortgage automatically
BThe existing mortgage is paid off through escrow, the seller receives net proceeds after payoff and closing costs, and the buyer takes title free of the old mortgage (unless assuming it)✓ Correct
CThe buyer must separately arrange payoff before closing
DThe mortgage transfers to the buyer's name automatically
Explanation
In a standard transaction, the settlement agent pays off the seller's existing mortgage from sale proceeds at closing, and the seller receives remaining net proceeds. The buyer takes title free and clear of the old mortgage, with their own new financing secured by the property.
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