Escrow & Title
In Tennessee, a buyer who pays cash and takes title without a title search or title insurance assumes the risk of:
ANo risk, since the deed is delivered at closing
BUnknown title defects, liens, encumbrances, or competing claims that could affect ownership✓ Correct
COnly future tax increases
DOnly physical damage to the property
Explanation
Without a title search and title insurance, a cash buyer assumes the risk of all pre-existing title defects, unpaid liens, undisclosed encumbrances, and other clouds on title.
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