Escrow & Title
Which of the following would NOT be covered by a standard owner's title insurance policy?
AA forged deed somewhere in the chain of title
BA lien created by the insured owner after the policy was issued✓ Correct
CAn error in public records
DAn undisclosed heir claiming an interest in the property
Explanation
Title insurance covers defects and risks existing as of the policy date. It does not cover matters arising after the policy is issued, including liens or encumbrances created by the insured owner. The policy protects against past defects in title, not future actions of the insured.
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