Before the seller's lawyer can disburse proceeds, what must they verify regarding the seller's financial obligations?

When assessing the conditions under which a seller's lawyer can disburse proceeds from a real estate transaction, it is crucial to consider the seller's financial obligations, particularly regarding their mortgage. The verification that the seller's mortgage must be paid off is a fundamental step prior to disbursement.

This is because most mortgages have a lien on the property, and before transferring ownership to the buyer, any encumbrances need to be cleared. Ensuring the mortgage is satisfied protects the interests of the buyer and ensures that the new owner receives a clear title. If the mortgage is not settled, the lender still retains a claim on the property, which would complicate the transaction and potentially lead to legal disputes.

While settling personal debts and ensuring property taxes are current are important aspects of the financial health of the seller, they are secondary to the primary obligation of addressing the mortgage. The waiver of liability typically pertains to allegations of negligence or claims against potential damages after the sale, and it does not directly relate to the disbursement of proceeds. Thus, confirming that the mortgage is paid off is essential for moving forward with the sale and protecting all parties involved.