Comprehensive and Detailed Explanation (150–250 words):
Standard title insurance protects against defects in title that existed prior to closing and were not discovered in the public record. Covered risks include:
Forged deeds or signatures.
Fraud in the chain of title.
Undisclosed heirs.
Mistakes in recording.
Therefore, if a seller forged a co-owner’s (ex-partner’s) signature on the deed, title insurance would cover the buyer.
B: Post-closing liens (such as new HOA liens) are not covered.
C: Known defects or issues (shed violating setbacks) are not covered.
D: Occupancy issues are outside the scope of standard title coverage.
Thus, the correct answer is A.
[Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Transfer of Title; Title Insurance., ]
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit