Standard title insurance protects against defects in title that existed before closing, such as forged documents, undisclosed heirs, or improperly executed deeds.
It does not cover issues arising after closing (like new HOA liens).
It does not protect against defects the buyer already knew about.
It also does not insure physical possession or condition of property.
Thus, the correct answer is A.
[Reference: NJ Real Estate Salesperson Study Guide, Chapter on Title and Title Insurance., ]
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