Escrow & Title
A title company in Pennsylvania that discovers an undisclosed lien after issuing a title insurance policy will typically:
AVoid the policy and refund the premium
BDefend the insured against the lien or pay the insured's loss✓ Correct
CRequire the seller to reimburse the buyer
DFile a complaint with PREC
Explanation
Title insurance protects the insured against covered title defects, including undisclosed liens. If a covered claim arises, the title company will either defend the insured against the claim in court or pay the insured's financial loss up to the policy limit.
Related Pennsylvania Escrow & Title Questions
- A 'waiver of subrogation' in a Pennsylvania title insurance policy means:
- A marketable title in Pennsylvania means:
- Pennsylvania's recording act protects subsequent purchasers who record their deed. This means a later buyer who pays value and records first will generally prevail over:
- A Pennsylvania property owner who discovers their neighbor has been adversely possessing a portion of their land can stop the clock on the adverse possession period by:
- A 'deed restriction' (restrictive covenant) in Pennsylvania runs with the land, meaning:
- A Pennsylvania deed must describe the property being conveyed with sufficient certainty. Acceptable legal descriptions include:
- A Pennsylvania title insurance commitment (binder) is issued:
- A chain of title refers to:
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