Escrow & Title
The primary purpose of title insurance is to:
AGuarantee the physical condition of the property
BProtect against losses from title defects, liens, and encumbrances that existed before the policy date✓ Correct
CEnsure the buyer will obtain financing at the agreed-upon interest rate
DProtect the seller against claims arising after closing
Explanation
Title insurance protects the insured (owner or lender) against financial loss from title defects, liens, or encumbrances that were unknown or undiscovered before closing. It covers past events, unlike other insurance that covers future risks.
Related Arkansas Escrow & Title Questions
- A buyer's closing costs typically include which of the following?
- In a 'race-notice' recording state (which Arkansas follows), to be protected, a subsequent purchaser must:
- In an escrow, the escrow agent's primary duty is to:
- Proration at closing refers to:
- In an Arkansas real estate transaction, who typically conducts the closing?
- Prorations at closing are used to:
- A deed must contain which of the following to be valid in Arkansas?
- The closing disclosure (CD) must be provided to the borrower at least how many business days before closing under TRID rules?
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