Escrow & Title
What does title insurance protect against?
APhysical damage to the property
BFuture encumbrances placed on the property after closing
CDefects in title that existed prior to the policy date✓ Correct
DEnvironmental contamination discovered after closing
Explanation
Title insurance protects the insured against losses arising from title defects, liens, or encumbrances that existed before the policy's effective date.
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