A buyer in Miami purchases a condominium and discovers after closing that there is an undisclosed mechanics lien from previous construction work. The buyer has an owner's title insurance policy. What is the most likely outcome?
Correct Answer
A) The title insurance company will pay to remove the lien and defend the buyer's title
The title insurance company will pay to remove the lien and defend the buyer's title because mechanics liens are typically covered under standard owner's title insurance policies, protecting the insured against such title defects. Option B is incorrect because title insurance protects against recorded liens that were not disclosed. Option C is incorrect because while the seller may have liability, the title insurance provides immediate protection to the buyer. Option D is incorrect because real estate agents are not responsible for title defects.
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More Titles Deeds Recording Questions
In a Tampa transaction, a buyer wants the Florida rule on chain of title. Which statement is correct?
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Sarah is selling her Miami Beach condominium to Robert. At closing, she signs a deed that contains warranties that she owns the property and has the right to convey it, but provides no warranties against defects that existed before she acquired the property. What type of deed did Sarah most likely execute?
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