Escrow & Title

Title insurance in Oregon protects against:

AFuture physical damage to the property
BDefects in title that existed at or before the policy's effective date (closing)✓ Correct
CFuture zoning changes that reduce the property's value
DIncreases in property taxes after purchase

Explanation

Title insurance protects against losses from title defects that existed at or before the policy date — such as forged deeds, undisclosed heirs, recording errors, unreleased liens, and fraud. It does NOT protect against: future physical damage (covered by homeowner's insurance), future zoning or use changes, environmental contamination discovered after closing, or changes in value. An ALTA extended coverage policy provides additional protections over a standard policy.

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