Escrow & Title
A Virginia title insurance company that discovers a pre-existing lien not shown in the title search after closing must:
AIgnore it if the buyer already moved in
BPay to defend or clear the lien under the terms of the title insurance policy✓ Correct
CRequire the buyer to pay for clearing the lien
DNotify VREB immediately
Explanation
Title insurance covers losses arising from defects, liens, or encumbrances covered by the policy that existed before the policy date. The insurer must defend against or pay covered claims.
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