Escrow & Title
What is 'title insurance' and why is it important in Delaware real estate transactions?
AInsurance that covers physical damage to the property after purchase
BInsurance that protects the insured against financial loss from defects in title, liens, or encumbrances that existed before the policy date✓ Correct
CInsurance required by the Delaware Real Estate Commission for all transactions
DInsurance that covers the seller against buyer default
Explanation
Title insurance protects lenders (lender's policy) and owners (owner's policy) against financial loss from title defects, undisclosed liens, forgeries, or other issues that existed before the policy date but were not found in the title search. Delaware buyers are strongly advised to obtain an owner's title insurance policy.
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