Which of the following statements is true regarding title defects?

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Prepare for the Real Estate Transactions Exam. Study with comprehensive questions, detailed hints, and explanations to enhance your knowledge and pass the exam with ease. Get exam-ready today!

The statement that title defects can be cured by the seller before closing is true. In real estate transactions, title defects refer to any issues that may impair the ability to transfer ownership of a property, such as liens, encumbrances, or inaccuracies in the title record. It is often the seller's responsibility to address these defects prior to closing the sale to ensure that the buyer receives clear and marketable title.

Sellers are typically required to disclose known defects and may take necessary actions to remedy these issues, such as paying off liens, obtaining necessary releases, or correcting title documentation. Addressing these defects is essential for closing the transaction smoothly and protecting the buyer's investment.

In contrast, the other statements do not align with typical real estate practices. Title defects can indeed be cured, and while buyers should be aware of minor defects, it’s not prudent to ignore them entirely. Sellers can be held accountable for title defects, especially if they failed to disclose issues or comply with obligations to resolve them before the transaction concludes.

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