Escrow & Title
A buyer who pays cash for a property and does not obtain title insurance is:
AFully protected by Alabama law
BTaking a risk because there is no protection against unknown title defects✓ Correct
CProtected by the seller's general warranty deed alone
DRequired by law to obtain title insurance
Explanation
A buyer who foregoes title insurance has no protection against unknown pre-existing title defects, even if the seller provided a general warranty deed. Defending a title claim can be costly.
Related Alabama Escrow & Title Questions
- Abstract of title is best described as:
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- The doctrine of actual notice means:
- In Alabama, which party typically selects the closing attorney?
- A deed that is signed by the grantor but held by a third party to be delivered upon the occurrence of a condition is known as a(n):
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