Post-closing title defects are not protected by standard title insurance. Which statement best reflects this?

Post-closing title defects are not protected by standard title insurance. Which statement best reflects this?

• A. True
• B. False
• C. Only if recorded
• D. Only with rider

Answer: (B)

Standard title insurance protects against defects in the title that existed at the date the policy is issued, even if those problems aren’t discovered until after closing. So post-closing title defects that stem from a title issue that existed at the policy date are covered by the standard policy. That’s why the statement is false. Coverage isn’t about when the defect is discovered; it’s about whether the defect existed on the policy date. If a defect arises entirely after closing and wasn’t present at policy time, it may not be covered without an endorsement or rider.

Standard title insurance protects against defects in the title that existed at the date the policy is issued, even if those problems aren’t discovered until after closing. So post-closing title defects that stem from a title issue that existed at the policy date are covered by the standard policy. That’s why the statement is false. Coverage isn’t about when the defect is discovered; it’s about whether the defect existed on the policy date. If a defect arises entirely after closing and wasn’t present at policy time, it may not be covered without an endorsement or rider.