Escrow & Title
When a buyer purchases a property and receives a title insurance policy, the one-time premium covers:
AOnly risks that arise after the policy date
BRisks arising from defects that existed prior to the policy date✓ Correct
CPhysical damage to the property
DAny future change in zoning
Explanation
Title insurance is retrospective — it protects against title defects, liens, and claims that existed before the policy date but were undiscovered at the time of purchase. It does not cover events occurring after the policy date.
Related Montana Escrow & Title Questions
- A preliminary title report (or title commitment) is issued to:
- In Montana, 'title by adverse possession' differs from title obtained by deed in that the adverse possessor:
- In Montana, a 'certificate of title' differs from title insurance in that it:
- A deed of trust differs from a mortgage because with a deed of trust:
- In Montana, a 'subordination clause' in a mortgage or deed of trust allows:
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- In Montana, a 'deed of reconveyance' is recorded when:
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