Escrow & Title
A Texas title company that discovers a judgment lien against the seller at closing will require:
AThe buyer to accept the lien and pay it off after closing
BThe lien to be satisfied from the seller's proceeds at or before closing before issuing the title policy✓ Correct
CThe lender to assume the judgment
DTREC approval to proceed with the closing
Explanation
Judgment liens and other monetary liens must generally be paid off (satisfied) from the seller's proceeds at closing before the title company can issue a clean owner's title insurance policy. The title company coordinates payoffs.
Related Texas Escrow & Title Questions
- In Texas, the closing disclosure must be provided to the buyer at least how many business days before closing under TRID rules?
- A 'deed in lieu of foreclosure' in Texas occurs when:
- In Texas, an 'abstract and opinion' system of title assurance means:
- In Texas, a 'quiet title action' is a lawsuit filed to:
- The standard Texas title insurance policy (T-1) provides coverage for:
- In Texas, a 'writ of execution' in real estate means:
- In Texas, a 'lender's policy' of title insurance (mortgagee's policy) protects:
- Under RESPA, a kickback paid to a real estate agent for referring business to a title company is:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →