Finance
In Michigan, 'title insurance' for the lender protects against all of the following title defects EXCEPT:
AForged deeds in the chain of title
BUndisclosed heirs with a claim to the property
CFuture liens created by the new owner after closing✓ Correct
DErrors in the public records
Explanation
A lender's title insurance policy protects against pre-existing title defects (forged deeds, missing heirs, recording errors) that existed before the policy was issued. It does not protect against liens or claims that arise after the policy date from the new owner's actions.
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