Escrow & Title

In North Dakota, title insurance protects against which of the following?

AFuture physical damage to the property
BTitle defects, liens, or encumbrances that exist at the time the policy is issued✓ Correct
CProperty value decreases after purchase
DViolations of zoning ordinances after closing

Explanation

Title insurance protects against financial losses from title defects, liens, encumbrances, or adverse claims that existed at or before the policy's effective date. It does not protect against future events.

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