A Maryland real estate licensee is working with a buyer interested in purchasing a property at a trustee's foreclosure sale. The licensee should advise the buyer that title acquired at a Maryland trustee's sale is typically conveyed by which type of deed?
Correct Answer
C) A trustee's deed that conveys the property without warranty of title
At a Maryland trustee's foreclosure sale, the trustee conveys the property to the purchaser using a trustee's deed. This deed conveys the property without warranty of title — the trustee makes no guarantees about the condition of title or any prior claims against the property. The purchaser takes the property 'as-is' in terms of title, which is why buyers at foreclosure sales are strongly advised to conduct a thorough title search and obtain title insurance. The absence of warranty is a significant risk factor that distinguishes foreclosure purchases from traditional sales.
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Related Topics & Key Terms
Key Terms:
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RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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