Escrow & Title
In Colorado, which of the following would NOT be covered by a standard owner's title insurance policy?
AA. A forged deed in the chain of title discovered after closing
BB. A neighbor's fence built 2 feet over the property line (an encroachment visible from inspection)✓ Correct
CC. An undisclosed heir who appears after closing and claims ownership
DD. A mortgage lien that was not paid off at closing due to a title company error
Explanation
A standard owner's title insurance policy covers hidden defects — title problems not apparent from a reasonable search. An encroachment visible from a physical inspection (like a neighbor's fence crossing the boundary line) would typically be excluded as a 'survey exception' — it would have been discovered by an accurate survey.
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