Unlike Other Forms of Evidence of Title, Title Insurance Guards

question 28

Multiple Choice

Unlike other forms of evidence of title, title insurance guards the grantee against certain risks. However, there are a number of important limits to title insurance. Which of the following is an example of the limits to title insurance?

• A) It does not protect the grantee from the threat of physical damage to the property.
• B) It does not protect a grantee against the legal costs of defending the title
• C) It does not protect a grantee against loss of the property in case of an unsuccessful title defense.
• D) It does not protect against legal attack on the owner's title arising from a claim that diminishes the owner's rights of use.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, usually the local currency or the currency of the country where it primarily generates and expends cash.

Fair Value

The proceeds from selling an asset or the financial burden of a liability transfer in a civilized negotiation with market participants on the valuation date.

Functional Currency

The main currency used by a business or in an economy, often the domestic currency or the currency of the primary economic environment in which the entity operates.

Foreign Currency

Refers to currencies other than the domestic currency of a company, used in international trade and investment.