Escrow & Title
An owner's title insurance policy in Georgia protects:
AThe lender against title defects
BThe buyer/owner against title defects that existed prior to the policy date✓ Correct
CFuture title defects arising after closing
DThe broker against commission disputes
Explanation
An owner's title insurance policy protects the buyer/owner against financial loss from title defects, liens, or claims that existed before the policy was issued. It is a one-time premium paid at closing.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Math Concepts
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