Escrow & Title
An Alabama title insurance company that discovers a previously unknown prior deed would:
ACancel the policy and refund the premium
BDefend the insured's title and pay covered claims up to the policy amount✓ Correct
CRequire the insured to resolve the issue at their own expense
DTransfer the problem to AREC
Explanation
Title insurance protects the insured against covered title defects — the title company defends the insured's title and pays valid claims up to the policy limit.
Related Alabama Escrow & Title Questions
- A buyer's lender requires a lender's title insurance policy. Who typically pays for this in Alabama?
- In a 1031 exchange, a real estate investor:
- Priority of liens in Alabama generally follows what rule?
- A 'satisfaction of judgment' recorded in Alabama serves to:
- The ALTA lender's title insurance policy protects the lender for the life of the loan up to:
- In a typical Alabama residential transaction, who pays for the owner's title insurance policy?
- Which type of deed would a grantor use to convey property while retaining a life estate?
- A buyer who purchases property 'subject to' an existing mortgage:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →