Escrow & Title (alternative)
A Maryland property's title insurance policy issued at closing typically insures against which pre-existing condition?
AFuture roof leaks
BA prior owner's unrecorded deed that surfaces after closing✓ Correct
CZoning changes after the policy date
DMarket value decline after closing
Explanation
Title insurance protects against pre-policy title defects such as prior unrecorded deeds, forgeries, undisclosed heirs, or recording errors that may surface after closing to challenge the insured's title.
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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).
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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