Escrow & Title
A buyer in Morgantown, WV closes on a property but the seller's contractor has an unpaid materialman's lien filed after the deed was recorded. The buyer's title insurance policy will:
ANot cover this lien since it arose after closing
BCover the buyer against this lien if it was not disclosed in the title commitment as an exception✓ Correct
CRequire the buyer to pay the lien personally
DOnly cover liens arising more than 5 years before closing
Explanation
Title insurance covers title defects that existed as of the policy date. If the contractor's lien arose after the deed was recorded to the buyer, it is generally a post-policy event not covered. However, if the lien pre-existed closing and was not listed as an exception, coverage may apply.
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