Escrow & Title
Title insurance in Hawaii protects the policyholder against:
AFuture physical damage to the property
BDefects in or liens on the title that existed before the policy was issued✓ Correct
CRising property tax assessments
DNatural disasters and floods
Explanation
Title insurance protects the insured against financial loss from defects in title, liens, encumbrances, or other title-related issues that existed prior to the policy's issuance date.
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Key Terms to Know
Chain of Title
The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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