Escrow & Title
Title insurance protects against:
AFuture physical damage to the property
BHidden defects in the title that existed before the closing✓ Correct
CEnvironmental contamination found after closing
DFuture zoning changes that affect the property
Explanation
Title insurance protects against losses arising from defects in the title that existed before the policy's effective date, such as forged documents, undisclosed heirs, recording errors, or prior liens.
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