In running a title search, National Escrow discovers that the seller's property does not have a lien release on a mortgage that was paid off ten years ago. The seller furnishes a letter from the lender that states the loan was paid in full. The escrow instructions require National to have all lien releases filed or on record before closing. Because the actual release will take 21 days to process, National closed escrow with only the letter.
A)National has breached its fiduciary duty through its failure to follow the escrow instructions.
B)National is permitted to use discretion in situations such as this.
C)A letter of discharge and lien release are the same thing.
D)None of the above
Question 2
Pittsburgh Fuels (PF) has been drilling for oil near Lancaster, Pennsylvania. The wells have been productive. Fred Deutsch, a farmer with land next to the PF drilling area, has been able to detect a drill bit beneath the surface of his property. Farmer Deutsch:
A) Has no legal means to stop the drilling beneath his property.
B) Has no rights to the oil if Pennsylvania is a rule of capture state.
C) Has no rights if Pennsylvania is a Riparian state.
D) Can stop the drilling as a trespass.
