Escrow & Title
A Connecticut buyer purchases a home and gets a lender's title insurance policy at closing. Six months later, the buyer learns there is an unrecorded easement that allows the neighbor to cross the property. The buyer's title insurance will:
ANot cover the easement because it was unrecorded
BCover the easement because the policy insures against pre-closing title defects that were not disclosed✓ Correct
CCover only if the buyer also purchased an owner's title insurance policy
DNot cover because the buyer should have discovered it during the inspection
Explanation
Title insurance covers pre-closing title defects that were not discovered and disclosed at closing. An undisclosed unrecorded easement that existed before the policy was issued is a covered title defect.
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