Escrow & Title
A Washington property buyer discovers that a prior owner's contractor filed a mechanic's lien 3 years ago for $25,000 that was never satisfied or released. The lien affects the property the buyer is about to purchase. The title company should:
AIgnore it because mechanic's liens expire after 2 years in Washington
BRequire the lien to be satisfied, bonded, or adjudicated as unenforceable before insuring clean title✓ Correct
CWrite an exception into the title policy covering the lien amount
DAutomatically discharge the lien after notifying the contractor
Explanation
Mechanic's liens are encumbrances that must be resolved before issuing a title insurance policy without exceptions. The title company will require the lien to be satisfied, released, or bonded over.
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