Escrow & Title
Title insurance protects the insured against:
AFuture physical damage to the property
BUndiscovered title defects that existed prior to the policy date✓ Correct
CIncreases in property taxes after closing
DThe buyer defaulting on the mortgage
Explanation
Title insurance protects the insured (lender or owner) against financial loss from undiscovered title defects, liens, or encumbrances that existed prior to the policy's effective date.
Related New Mexico Escrow & Title Questions
- In New Mexico, a 'quiet title action' is filed in court to:
- A lis pendens recorded against a property indicates:
- A 'deed in lieu of foreclosure' in New Mexico occurs when:
- A 'HUD-1 Settlement Statement' (now largely replaced by the Closing Disclosure) was used to:
- A general warranty deed provides the greatest protection to the buyer because the grantor:
- A release deed (reconveyance) in New Mexico is used to:
- In New Mexico, a 'quiet title action' is a court proceeding used to:
- A subordination agreement in New Mexico allows:
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