Final answer:
When a property is sold using a warranty deed, the seller's financial responsibility depends on the terms of the deed. The seller remains financially responsible for correcting any title defects that were not disclosed to the buyer. The seller's responsibility may be limited to disclosed defects and may have a specific time period attached. The correct option is 1) The seller remains financially responsible for correcting any title defects that were not disclosed to the buyer.
Step-by-step explanation:
When a property is sold using a warranty deed, the seller’s financial responsibility depends on the terms of the deed. In general, the seller remains financially responsible for correcting any title defects that were not disclosed to the buyer. This means that if there are any issues with the title that were not previously mentioned, the seller is obligated to fix them.
The seller is not automatically responsible for any title defects, but their responsibility is contingent upon disclosure. If the seller discloses any known title defects to the buyer before the sale, then the seller's financial responsibility may be limited to those specific defects.
In terms of time period, there is no automatic limitation on the seller's financial responsibility. However, the terms of the warranty deed may include a specific time period in which the seller is responsible for addressing any title defects. The correct option is 1) The seller remains financially responsible for correcting any title defects that were not disclosed to the buyer.