Escrow & Title
A Texas closing involves the seller having a $150,000 mortgage balance being paid off. At closing, the title company will:
ATransfer the mortgage to the buyer
BPay off the existing mortgage from proceeds and record a release of lien✓ Correct
CRequire the buyer to assume the mortgage
DHold the payoff amount in escrow for 30 days
Explanation
At closing, the title company uses sale proceeds to pay off the seller's existing mortgage(s) and ensures that a release of lien (satisfaction) is recorded in the public records, giving the buyer clear title.
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