Escrow & Title
Title insurance protects against:
AFuture physical damage to the property
BDefects in title that existed prior to the policy date✓ Correct
CThe buyer defaulting on the mortgage
DIncreases in property tax assessments
Explanation
Title insurance protects the policyholder against losses arising from defects in title that existed before (and were undiscovered at) the time the policy was issued — such as prior liens, forged documents, or undisclosed heirs.
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