Escrow & Title
A Virginia buyer purchases a property and later discovers there was an unreleased mortgage from a prior owner that was paid off but never released from the records. This creates a:
AValid lien the buyer must pay
BCloud on title that can be removed by recording a deed of release or filing a quiet title action✓ Correct
CAutomatic title insurance claim
DVREB enforcement action
Explanation
An unreleased mortgage that was actually paid creates a cloud on title. It can be cleared by obtaining and recording a deed of release (satisfaction of mortgage) from the lender, or by filing a quiet title action in circuit court.
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