Escrow & Title
An 'owner's title insurance policy' in New Jersey protects:
AThe lender's interest only
BThe buyer/owner against losses from title defects that existed before the policy date✓ Correct
CFuture defects created after closing
DOnly defects discovered during the title search
Explanation
An owner's title insurance policy protects the buyer against financial loss from title defects, liens, encumbrances, or ownership claims that existed before the policy date but were not discovered during the title search. It is a one-time premium paid at closing.
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