What should B do if they are aware of an adverse claim to title?

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Prepare for the Real Estate Transactions Exam with study materials and multiple choice questions with comprehensive explanations. Enhance your real estate knowledge and boost your confidence for exam day!

When B is aware of an adverse claim to title, performing due diligence to investigate further is crucial. This approach allows B to gather pertinent information regarding the claim, understand its validity, and assess how it could impact the title being purchased.

Investigating the claim can involve reviewing public records, meeting with attorneys, or obtaining title insurance that may help protect B from potential losses resulting from the adverse claim. This proactive step is vital in real estate transactions because failing to address such claims could lead to significant legal and financial problems in the future.

The other options present less favorable courses of action. Ignoring the claim exposes B to risk, as unresolved issues can lead to disputes or title defects after the acquisition. Requesting the claim to be removed before closing may not be feasible, depending on the nature and complexity of the claim. Waiting for legal action could leave B in a vulnerable position, delaying or potentially jeopardizing the transaction altogether. Overall, conducting due diligence is the best course of action for B in this situation.

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