An Alabama title insurance policy protects the insured against:
Why Defects in title that existed at the time of the policy Is Correct
Answer C: Defects in title that existed at the time of the policy
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
People Also Study
Related Alabama Questions
- Which type of title insurance policy protects the lender in an Alabama real estate transaction?Escrow & Title
- A title insurance policy that protects the lender's interest is called a:Escrow & Title
- In Alabama, which document provides the most protection for a buyer against title defects?Escrow & Title
- A lender's title insurance policy protects:Escrow & Title
- The recording act in Alabama protects which subsequent purchasers against prior unrecorded interests?Property Ownership
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →