Escrow & Title
Title insurance protects the policyholder from:
AFuture physical damage to the property
BPast defects in the title that were unknown at closing✓ Correct
CChanges in property value after purchase
DIncreases in property tax assessments
Explanation
Title insurance protects lenders and buyers from losses arising from defects in title that existed before the policy date but were unknown at the time of closing—such as forged deeds, undisclosed heirs, or recording errors.
Related Arkansas Escrow & Title Questions
- What is the purpose of a commitment for title insurance?
- A lis pendens is:
- The Closing Disclosure (CD) must be provided to the borrower at least how many business days before consummation?
- A chain of title refers to:
- In a race-notice jurisdiction like Arkansas, a subsequent purchaser who records first AND has no notice of a prior unrecorded deed wins. This means:
- A lender's title insurance policy (loan policy) protects:
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- Which of the following BEST describes a 'cloud on title'?
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