Escrow & Title
Title insurance in New York protects against:
APhysical damage to the property
BDefects in the title that existed prior to the policy issuance✓ Correct
CFuture zoning changes
DIncreases in property taxes
Explanation
Title insurance protects the insured against losses resulting from defects in the title that existed prior to the policy being issued, such as undisclosed liens, forgeries, errors in public records, or competing ownership claims.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
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