Escrow & Title

A Wisconsin title search reveals a mechanic's lien filed by a contractor. This lien:

AAutomatically expires after one year
BMust be resolved before clear title can be conveyed to the buyer✓ Correct
COnly affects the current owner and not the buyer
DHas no effect if the buyer obtains title insurance

Explanation

A mechanic's lien is an encumbrance on the property that must be paid off or released before the seller can convey clear title. Title insurance covers losses from undiscovered liens, but known liens must still be cleared at closing.

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