Escrow & Title
What is the purpose of title insurance in a Delaware real estate transaction?
ATo ensure the property will increase in value
BTo protect against losses from defects in the title that existed prior to the policy date✓ Correct
CTo insure the buyer against market value decline
DTo cover the cost of future property repairs
Explanation
Title insurance protects the insured (owner or lender) against financial losses from defects in title that existed prior to the policy date, such as undisclosed liens, forgery, and errors in public records.
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