Escrow & Title
The purpose of title insurance in real estate is to:
AGuarantee the property will not lose value
BProtect against financial loss from title defects, liens, or encumbrances that affect ownership✓ Correct
CEnsure the property's physical condition is sound
DReplace the need for a property survey
Explanation
Title insurance provides financial protection against losses arising from covered title defects, hidden liens, or encumbrances that were unknown at the time of purchase. It is a one-time premium paid at closing.
Related Arkansas Escrow & Title Questions
- A buyer's closing costs typically include which of the following?
- Title to real property is transferred at the moment of:
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