Escrow & Title (alternative)
Title insurance in Maryland does NOT protect against:
AForgery in the chain of title
BFuture events such as new encroachments, new liens, or future zoning changes after the policy date✓ Correct
CUnknown liens existing before the policy date
DErrors in the public records
Explanation
Title insurance covers title defects that existed before the policy was issued. It does not cover post-policy events like new liens placed after closing or future zoning changes.
People Also Study
Related Maryland Questions
- In Maryland, an owner's title insurance policy is typically issued for a premium paid:Escrow & Title
- A Maryland property's title insurance policy issued at closing typically insures against which pre-existing condition?Escrow & Title (alternative)
- What does title insurance protect against?Escrow & Title
- An owner's title insurance policy in Maryland protects:Escrow & Title
- A Maryland seller pays 6% commission, $2,500 in attorney fees, and $1,800 in title insurance on a $480,000 sale. What are total closing costs?Real Estate Math
- In Maryland, a builder's warranty typically covers new construction against defects for what minimum period?Contracts (alternative)
- A Maryland apartment community that has a 'no overnight guests' policy that it enforces only against same-sex couples is violating the Fair Housing Act based on:Fair Housing
- A Maryland buyer pays $3,600 in prepaid interest at closing on a $400,000 loan at 7.2% annual interest. How many days of prepaid interest does this cover?Real Estate Math (alternative)
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.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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
Study This Topic
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →