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Multiple Choice

Title insurance insures against losses from defects in title that were not found during the title search. The process referenced is best described as which of the following?

Title search is the process of examining public records to identify defects that could affect ownership, such as liens, encumbrances, or competing claims. The idea that title insurance covers losses from defects not found during that search shows this step is about uncovering title issues through records, and then providing protection against anything missed. A survey checks property boundaries, a zoning review looks at compliance with zoning rules, and an environmental assessment looks for environmental risks—none of these focus on uncovering defects in the title itself.

Title search is the process of examining public records to identify defects that could affect ownership, such as liens, encumbrances, or competing claims. The idea that title insurance covers losses from defects not found during that search shows this step is about uncovering title issues through records, and then providing protection against anything missed. A survey checks property boundaries, a zoning review looks at compliance with zoning rules, and an environmental assessment looks for environmental risks—none of these focus on uncovering defects in the title itself.