Escrow & Title
Title insurance in Maryland protects against:
AFuture physical damage to the property
BDefects in title that existed before the policy was issued✓ Correct
CIncreases in property taxes
DChanges in zoning regulations
Explanation
Title insurance protects buyers and lenders against losses from title defects, liens, or encumbrances that existed prior to the issuance of the policy.
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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.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
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
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