Escrow & Title
Title insurance in Kentucky protects against:
AFuture physical damage to the property
BDefects in title that existed prior to the policy date✓ Correct
CChanges in zoning laws
DFuture liens placed on the property by the owner
Explanation
Title insurance protects the insured against losses arising from defects in title that existed prior to the policy date, such as undisclosed liens, forgery, or errors in public records.
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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.
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.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
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