Escrow & Title

A South Dakota seller agrees to pay off their mortgage at closing from sale proceeds. At closing, the escrow agent will:

ATransfer the mortgage to the buyer automatically
BPay the lender's payoff amount and obtain a mortgage satisfaction/release for recording✓ Correct
CRequire the seller to pay off the mortgage before the closing date
DAsk the buyer to assume the seller's mortgage

Explanation

The escrow agent pays the lender's payoff amount from sale proceeds and obtains a satisfaction/release of mortgage that is recorded to clear the lien from title.

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