Escrow & Title
A Virginia title search reveals a mechanic's lien recorded after the sales contract was signed. What should happen?
AThe buyer must accept the lien
BThe lien must be satisfied or released before or at closing✓ Correct
CThe lien is automatically removed when a new deed is recorded
DThe buyer's title insurance covers it without negotiation
Explanation
A mechanic's lien is a cloud on title that must be resolved before closing. The seller must satisfy or obtain a release of the lien so the buyer receives clear title.
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