Escrow & Title
A Kentucky buyer discovers after closing that a previous owner had a boundary dispute with a neighbor that was not disclosed. The buyer's owner's title insurance policy would cover this if:
AThe dispute was ongoing at the time of closing and was not excluded from the policy✓ Correct
BThe dispute was settled before closing and excluded from the policy
CThe boundary issue was a survey matter only
DThe buyer purchased an extended coverage endorsement
Explanation
Owner's title insurance covers undisclosed title defects that existed before closing. If a boundary dispute existed and was not disclosed or excluded from the policy, the title insurer would need to defend the buyer's title or compensate for losses.
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