Escrow & Title
What does title insurance protect against in a Rhode Island real estate transaction?
AFuture damage to the property from natural disasters
BLosses arising from defects in title that existed before the policy date✓ Correct
CLosses from the buyer defaulting on their mortgage
DProperty tax increases after purchase
Explanation
Title insurance protects the insured (buyer and/or lender) against losses from title defects that existed prior to the policy's effective date, such as undisclosed liens, forged deeds, errors in the public record, or missing heirs.
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