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

Practice More North Carolina Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free North Carolina Quiz →