Which of the following statements about title insurance is true?

Question

Quizplus · Accepted Answer

Title insurance provides protection against defects in the title that occurred prior to the effective date of the policy. The premium for title insurance is a one-time fee paid at the time of closing, and the policy term is typically for as long as the owner owns the property. Title insurance does not guarantee possession of the property, but rather protects against financial loss from title defects such as liens, encumbrances, or errors in the public records.

Which of the Following Statements About Title Insurance Is True