Under the TREC contract, the title commitment reveals a property tax lien from the previous year. The seller claims the taxes were paid but lost the receipt. What must happen before closing?
Correct Answer
A) The seller must obtain a tax certificate or other evidence showing the taxes were paid and the lien released
To clear the title objection, the seller must provide evidence that the taxes were paid, such as a tax certificate from the taxing authority. The title company will require proof before removing the lien exception from the title commitment.
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Related Topics & Key Terms
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Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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