Escrow & Title
In Iowa, which of the following would be shown as an exception in a title insurance policy?
AA defect discovered after the policy is issued
BA recorded easement or restrictive covenant that the buyer accepts✓ Correct
CA prior owner's mortgage that has been released
DA tax lien that has been fully paid
Explanation
Title insurance policies list specific exceptions—known encumbrances or conditions (like recorded easements or restrictive covenants) that the policy does not cover. The buyer takes title subject to these exceptions.
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