Escrow & Title
A buyer discovers after closing that there is an existing easement on the property that was not disclosed. If the buyer has an owner's title insurance policy, the policy would cover:
AAny easement that reduces the property's enjoyment
BEasements that were recorded before the policy was issued but not disclosed in the policy✓ Correct
COnly physical defects in the property
DEasements created after the policy was issued
Explanation
Owner's title insurance protects against title defects—including undisclosed recorded easements—that existed before the policy date. If a recorded easement was not listed as an exception in the policy and it causes a loss, the policy covers the claim.
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