Escrow & Title
In Illinois, which of the following would NOT appear on a title insurance commitment as an exception?
AAn existing mortgage that must be paid off at closing
BAn easement for a utility company crossing the property
CProperty taxes for the current year
DThe buyer's credit score✓ Correct
Explanation
A title insurance commitment lists exceptions—items the title insurance policy will not cover. Common exceptions include existing mortgages (to be satisfied at closing), easements, deed restrictions, property taxes (current and future), mechanic's liens, and survey issues.
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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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
State-Specific Concepts
Mechanic's Lien
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