Escrow & Title
The purpose of title insurance is to:
AGuarantee the physical condition of the property
BProtect against losses from title defects discovered after closing✓ Correct
CEnsure the property appraises at the purchase price
DCover property damage from natural disasters
Explanation
Title insurance protects the policyholder (owner or lender) against financial losses resulting from title defects, liens, or encumbrances that were not discovered during the title search.
Related Kentucky Escrow & Title Questions
- A Kentucky buyer closes on a home and does not record the deed immediately. Before the deed is recorded, the seller transfers the same property to another buyer who records their deed first. Under Kentucky's recording statute, who has priority?
- A Kentucky settlement statement shows the seller has property taxes that are prepaid through the end of the year. At closing on July 1, the seller should receive a:
- A Kentucky buyer wants to purchase a property that has an IRS tax lien. For the buyer to receive clear title, the IRS lien must be:
- A Kentucky warranty deed conveys property with the covenant that the grantor will defend the grantee's title against all claims. This is the covenant of:
- A Kentucky title insurance company that receives a claim must:
- In Kentucky, the closing attorney typically:
- A general warranty deed contains which of the following covenants?
- The purpose of recording a deed in Kentucky is to:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →