Escrow & Title
In Michigan, a 'gap' in title coverage may arise when:
AThere is a gap in the fence line
BThere is a period between when the title search was done and when the deed is actually recorded, during which new liens could be filed✓ Correct
CThe title company does not cover commercial properties
DThe title policy expires before closing
Explanation
A 'gap' occurs in the period between the final title search and the recording of the new deed and mortgage. During this window, new liens could be filed against the seller. Title insurance covers this gap, protecting the buyer and lender.
Related Michigan Escrow & Title Questions
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