Contracts
A South Dakota purchase agreement requires the seller to provide clean title at closing. If the title search reveals an unresolved mechanic's lien, the seller must:
AClose the transaction and dispute the lien after closing
BSatisfy or bond over the lien before or at closing✓ Correct
CAsk the buyer to assume the lien as a condition of sale
DCancel the contract without liability
Explanation
When the purchase agreement requires clean title, the seller must clear all liens and encumbrances before or at closing. The seller can pay off the mechanic's lien from sale proceeds or obtain a title bond.
Related South Dakota Contracts Questions
- In South Dakota, a contract for the sale of real estate is typically executed on which of the following forms?
- When a real estate contract is said to be 'executed,' it means:
- A buyer submits an offer. Before the seller accepts, the buyer changes their mind and withdraws the offer. This is an example of:
- In South Dakota, which of the following would be considered 'adequate consideration' in a real estate option contract?
- A right of first refusal in a South Dakota purchase agreement means:
- A South Dakota purchase agreement has a 'time is of the essence' clause. This means:
- A South Dakota purchase agreement for a commercial property fails to include a legal description of the property. This contract is most likely:
- A South Dakota buyer makes an offer on a property. Before the seller responds, the buyer sends a written revocation. The contract:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →