What is one potential risk of selling a home without a clean title?

Study for the New York Real Estate Institute (NYREI) Exam. Get ahead with flashcards and multiple choice questions, each accompanied by hints and explanations. Equip yourself with the knowledge to pass your exam confidently!

Selling a home without a clean title presents the significant risk that the new owner could be confronted with legal issues in the future. A clean title means that the property is free from liens, claims, and legal disputes; therefore, if a property has unresolved issues like unpaid taxes, outstanding mortgages, or other encumbrances, these problems do not simply disappear with the sale. They can lead to the new owner facing lawsuits or claims from creditors or previous owners, thereby complicating their ownership and impacting their ability to enjoy or sell the property in the future.

For example, if the seller has not resolved a lien on the property and proceeds with the sale, the buyer may discover that they are liable for that debt. This situation often leads to costly legal battles and can hinder the buyer's plans for the property, resulting in financial distress and loss of investment.

The other options do not accurately reflect the risks associated with selling a home without a clean title. While the seller might think they can gain more from the sale or that the selling price may be lower, these scenarios do not address the inherent legal implications tied to the absence of a clear title. Moreover, stating that no risk exists for the seller fails to take into account the potential complications that could arise and

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