Escrow & Title
An owner's title insurance policy in Michigan protects:
AThe lender against loss from title defects
BThe buyer/owner against loss from title defects that existed before the policy was issued✓ Correct
CThe seller from post-closing claims
DThe escrow company against errors
Explanation
An owner's title insurance policy (purchased at closing) protects the buyer from financial loss due to title defects—such as forged deeds, undisclosed liens, or errors in public records—that existed prior to the policy's issuance.
People Also Study
Related Michigan Questions
- In Michigan, an owner's title insurance policy protects:Escrow & Title
- In Michigan, a lender's title insurance policy protects:Escrow & Title
- In Michigan, a title insurance lender's policy (mortgagee policy) protects:Escrow & Title
- In Michigan, 'title insurance' for the lender protects against all of the following title defects EXCEPT:Finance
- A Michigan homeowner's title insurance policy typically protects against which of the following?Escrow & Title
- In Michigan, lender-required hazard (homeowners) insurance protects:Finance
- In Michigan, a residential landlord who fails to provide required disclosures under the Security Deposit Act (such as not providing a financial institution statement for the deposit location) may lose:Property Management
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Math Concepts
Study This Topic
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →