Escrow & Title
A Washington buyer learns at closing that the property has an unresolved mechanic's lien from a contractor the seller hired. The correct resolution is:
AThe buyer assumes the lien as part of the purchase
BThe lien must be paid off or bonded before the title insurance company will insure clear title✓ Correct
CThe lender will pay the lien at closing without affecting the buyer
DThe buyer can purchase title insurance that excludes the lien
Explanation
A mechanic's lien is an encumbrance on title. The title insurance company will not insure clear title with an unresolved lien.
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