Escrow & Title
A Washington seller sells their home without a real estate agent. At closing, the seller discovers there is an old unpaid judgment lien against the property. The title company will:
AIgnore it as an old lien
BRequire the lien to be paid off at closing before issuing the owner's policy✓ Correct
CIssue the title policy with the lien as a standard exception
DTransfer the lien to the buyer automatically
Explanation
A judgment lien is an encumbrance on the property that must be satisfied before the title company will issue a clean owner's title insurance policy. The seller must pay it off (or negotiate a release) at or before closing.
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