Escrow & Title
A South Dakota title company discovers an easement that was not disclosed to the buyer. If the title insurance policy covers easements, the buyer:
AMust negotiate directly with the easement holder
BIs protected by the title insurance policy for losses due to the easement✓ Correct
CMust cancel the purchase and receive a full refund
DHas no recourse since easements are common
Explanation
Title insurance protects the buyer against losses arising from title defects and encumbrances (including undisclosed easements) that were in existence at the time of the policy's issuance.
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