Escrow & Title
Title insurance in Illinois protects against:
AFuture zoning changes
BPhysical damage to the property
CDefects in title that existed prior to the policy's effective date✓ Correct
DThe buyer defaulting on the mortgage
Explanation
Title insurance protects the insured against losses arising from defects in title that existed prior to the policy's effective date (typically the closing date). These can include undiscovered liens, forged deeds, errors in public records, and missing heirs. It does not cover future events.
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