Escrow & Title
A buyer in Iowa pays $1,200 to a title company to obtain an owner's title insurance policy. If a title defect surfaces five years later, the policy:
AExpires after one year and provides no coverage
BProvides coverage for as long as the owner has an interest in the property✓ Correct
COnly covers defects that existed at the time of the abstract search
DTransfers to the buyer's heirs only if they purchase a new policy
Explanation
An owner's title insurance policy is a one-time premium that provides coverage for as long as the insured (and their heirs) have an interest in the property—there is no annual renewal.
Related Iowa Escrow & Title Questions
- Iowa is known for using which document to establish a chain of title rather than title insurance?
- The doctrine of 'priority of liens' in Iowa means that generally:
- In Iowa, title insurance protects against:
- In an Iowa title insurance transaction, when is a title insurance policy issued?
- Iowa is notable for its use of abstracts of title. After a real estate transaction in Iowa, a buyer typically receives:
- In Iowa, after reviewing an abstract of title, an attorney issues a document to confirm marketable title. This is called a(n):
- An owner's title insurance policy in Iowa protects:
- In Iowa, property taxes become a lien on real property:
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