Escrow & Title
A Minnesota buyer purchases a property with an owner's title insurance policy. After closing, a prior unrecorded easement is discovered. The title insurance company will:
AImmediately pay the buyer the full property value
BInvestigate the claim and defend/compensate the buyer if covered✓ Correct
CDeny the claim since easements are excluded
DRequire the seller to resolve the easement
Explanation
Title insurance protects against covered title defects discovered after closing. The insurance company investigates the claim, defends the insured's title if legally appropriate, and compensates the insured for covered losses.
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