Escrow & Title
What is a 'gap protection endorsement' in Illinois title insurance?
ACoverage for the gap between the purchase price and appraised value
BTitle insurance endorsement covering potential claims that arise between the title search date and the recording of the new deed✓ Correct
CA policy amendment covering uninsured gaps in coverage
DAn endorsement covering survey discrepancies in the property
Explanation
The gap endorsement provides title insurance coverage for the period between the effective date of the title search and the actual recording of the buyer's deed and mortgage. During this 'gap,' previously unrecorded documents (liens, deeds, judgments) could be recorded, potentially affecting the buyer's title. Gap coverage ensures the buyer is protected against such claims arising during this interim period, which is particularly important in Illinois's recording system.
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