If a lien remains unpaid at closing, what is a typical effect on title transfer?

If a lien remains unpaid at closing, what is a typical effect on title transfer?

• A. The Transfer May Be Blocked Until the Lien Is Paid
• B. The Transfer Is Unaffected
• C. The Lien Automatically Transfers to the New Owner
• D. The Lien Becomes Void After Closing

Answer: (A)

Liens are claims against a property that must be cleared to give the buyer a marketable title. At closing, the title company or closing agent requires any existing liens to be paid off or released before they insure title. If a lien remains unpaid, the closing can be blocked or delayed until the payoff is arranged, so the transfer of title can occur only after the lien is satisfied. The lien doesn’t automatically transfer to the new owner, and it doesn’t become void after closing.

Liens are claims against a property that must be cleared to give the buyer a marketable title. At closing, the title company or closing agent requires any existing liens to be paid off or released before they insure title. If a lien remains unpaid, the closing can be blocked or delayed until the payoff is arranged, so the transfer of title can occur only after the lien is satisfied. The lien doesn’t automatically transfer to the new owner, and it doesn’t become void after closing.