Question

In making the decision of whether or not to issue a title policy, the title insurance company would be most concerned with those documents that appear within the:

A) Title guarantee
B) Title report
C) Chain of title
D) Title search

Answer 1

A title insurance company focuses on the Chain of title when considering whether to issue a title policy, as it shows the historical transfers and identifies any title issues.

Step-by-step explanation:

When deciding whether to issue a title policy, the title insurance company would be most concerned with the documents that appear within the Chain of title (C). The Chain of title is the history of the transfers of title to a property. The title company examines this to identify any potential issues or defects with the property's title, such as liens, encumbrances, or discrepancies, that could affect the new owner's rights to the property. Ensuring that the title is clear is crucial as it protects the new owner and the lender's interests.