Professional Legal Training Course (PLTC) Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

The correct answer is indeed the letter with the mortgage payout statement. This document serves as official verification that the seller has paid off their mortgage. It typically outlines the details of the mortgage, including the outstanding balance at the time of payment, and confirms that the mortgage has been discharged. This is particularly important in real estate transactions to ensure that the buyer will receive clear title to the property, free of any liens or mortgages that could complicate ownership.

Providing this letter is a critical step in the closing process because it assures the buyer and their lawyer that there are no existing financial encumbrances on the property. This promotes transparency and fosters trust in the transaction, allowing the buyer to proceed with the purchase without concerns regarding the mortgage.

The title search document primarily identifies any potential liens or claims against the property but does not serve as evidence of mortgage repayment. Form A registration confirmation is related to the registration of various documents in the land registry and does not address the mortgage status directly. Lastly, title insurance policies protect against defects in the title but are not instruments to demonstrate that a mortgage has been paid. Thus, the letter with the mortgage payout statement is the most relevant and essential document for this scenario.