Escrow & Title
A Washington title search reveals a mechanic's lien filed after the purchase and sale agreement was signed but before closing. The buyer's attorney should:
AIgnore it as a post-contract lien
BRequire the seller to pay off or bond the lien before closing✓ Correct
CAccept it and deduct the lien amount from the purchase price
DAsk the title company to delete it from the commitment
Explanation
Mechanic's liens attach to property and must be addressed before a buyer can receive clear title. The seller is typically required to pay off or obtain a bond to release any liens before closing.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
State-Specific Concepts
Mechanic's LienDRE Regulation
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