Escrow & Title

An Indiana homeowner who loses their title to a forged deed discovered years after purchase would be protected by:

AOnly a general warranty deed
BTheir owner's title insurance policy, which covers forgery and other defects in title existing before the policy was issued✓ Correct
CIndiana's Torrens system only
DThe county recorder's errors and omissions policy

Explanation

An owner's title insurance policy covers losses arising from title defects that existed at the time of issuance, including forged deeds in the chain of title. This is one of the primary reasons for purchasing owner's title insurance.

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