Escrow & Title

An owner's title insurance policy in Pennsylvania protects:

AThe lender against defects in title
BThe buyer/owner against title defects that arose prior to the policy date✓ Correct
CThe seller against buyer's title claims after closing
DOnly the buyer's purchase price — not appreciation in value

Explanation

An owner's title insurance policy protects the buyer against losses from title defects that existed before the policy was issued — forged deeds, undisclosed heirs, recording errors, fraud, and similar issues. Coverage continues as long as the insured or their heirs own the property.

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