Escrow & Title
Title insurance in Iowa protects against:
APhysical damage to the property after closing
BLosses resulting from defects in title that existed prior to the policy date and were not disclosed in the policy✓ Correct
CFuture zoning changes affecting property use
DEnvironmental contamination
Explanation
Title insurance provides a one-time premium coverage for losses arising from title defects — such as forged deeds, undisclosed heirs, recording errors, or prior liens — that existed before the policy issuance date but were not known at closing.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Math Concepts
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