Escrow & Title
In South Carolina, a buyer who purchases a property without a title search or title insurance and later discovers an undisclosed prior lien will likely:
AHave the lien automatically extinguished by the purchase
BBe subject to the lien and could lose the property or be required to pay it✓ Correct
CHave protection under SC's race-notice statute regardless
DBe able to recover from SCREC's guaranty fund
Explanation
Without title insurance, a buyer who discovers a previously unknown lien or title defect may bear the financial consequences. Title insurance protects against such pre-existing, undiscovered title defects.
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