Escrow & Title
Which type of title insurance covers title defects that existed before — but were not discovered at — the time of purchase?
AProspective title insurance
BOwner's title insurance policy✓ Correct
CPerformance bond
DErrors and omissions insurance
Explanation
An owner's title insurance policy protects the buyer (and their heirs) against losses from title defects that existed before but were not discovered at closing — such as forged deeds, undisclosed heirs, or recording errors. Coverage is for the full purchase price.
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