Escrow & Title
In NC, 'gap coverage' in a title insurance policy protects against:
APrice differences between list and sale price
BTitle defects or liens recorded in the gap between the title search date and the recording of the new deed✓ Correct
CStructural defects not found during inspection
DSurvey discrepancies in boundary lines
Explanation
Gap coverage protects the policyholder against claims arising from documents recorded in the gap between the final title search and when the new deed is recorded at closing.
Related North Carolina Escrow & Title Questions
- In North Carolina, the excise tax on a deed is typically paid by:
- A 'FIRPTA withholding' at a NC closing applies when:
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- In a NC residential transaction, who typically pays the owner's title insurance premium?
- Which of the following would appear as a buyer's debit on a closing disclosure?
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