Escrow & Title
In Texas, 'title insurance' differs from other types of insurance in that it:
AProtects against future events that have not yet occurred
BProtects against losses from past events (defects existing before the policy date) discovered after closing✓ Correct
CRequires annual premium payments
DOnly covers the lender, not the property owner
Explanation
Unlike most insurance that covers future risks, title insurance protects against past events—defects in title that existed before the policy was issued but were not discovered until after closing. A one-time premium is paid at closing and the policy remains in effect for as long as the insured has an interest in the property.
Related Texas Escrow & Title Questions
- A 'deed in lieu of foreclosure' in Texas occurs when:
- When a Texas property is purchased, the buyer assumes which of the following automatically with the deed unless excepted?
- A Texas title company that discovers a judgment lien against the seller at closing will require:
- A Texas real estate closing involves the simultaneous exchange of the deed for the purchase price. This is facilitated by:
- Which of the following title defects would MOST likely be covered by a Texas owner's title insurance policy?
- The T-19 endorsement to a Texas title insurance policy (Restrictions, Encroachments, and Minerals endorsement) provides:
- In Texas, a title commitment Schedule B-II lists:
- Which of the following best describes the function of the county clerk's office in Texas real estate transactions?
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