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Residential TradingClosing ProceduresMEDIUM

On closing day, the buyer's lawyer discovers an unexpected lien against the property title. What is the most appropriate immediate action?

Correct Answer

B) Delay closing until the lien is resolved or title insurance covers the issue

An unexpected lien creates a title defect that must be resolved before closing or covered by title insurance. The buyer should not complete the purchase until they receive clear title or adequate insurance protection, as proceeding could result in the buyer acquiring property subject to the lien.

Answer Options
A
Complete the transaction and resolve the lien afterward
B
Delay closing until the lien is resolved or title insurance covers the issue
C
Reduce the purchase price by the amount of the lien
D
Transfer the lien responsibility to the buyer's mortgage lender

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