Escrow & Title
What is 'title insurance exception' for taxes and assessments and what does it mean for Idaho buyers?
ATitle insurance never covers taxes
BStandard title policies except (exclude) coverage for property taxes and assessments not yet due and payable at the time of policy issuance; current and future taxes are the buyer's responsibility✓ Correct
CA discount on title insurance for tax-exempt properties
DProtection against property tax increases after purchase
Explanation
Standard title insurance policies contain an exception for 'taxes, assessments, and charges not yet due and payable.' This means the policy does not cover future tax liabilities — the buyer accepts responsibility for paying property taxes going forward.
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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.
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.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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