Escrow & Title
In New Mexico, title insurance protects against:
AOnly future title defects
BUnknown past title defects discovered after closing✓ Correct
CPhysical damage to the property
DThe buyer's mortgage default
Explanation
Title insurance is a one-time premium policy protecting the insured against financial loss from unknown past title defects (such as forgeries, undisclosed liens, or errors in public records) discovered after closing.
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