What are the three types of risks associated with title insurance?

The correct answer identifies the three types of risks associated with title insurance as errors in the title search, hidden off-record title risks, and apparent off-record title risks.

Errors in the title search refer to mistakes made during the examination of public records or documents related to the property ownership. These errors can arise from various sources, such as clerical mistakes, incomplete records, or outdated databases. Title insurance protects against the financial loss resulting from such oversights.

Hidden off-record title risks encompass issues that may not be apparent in public records yet could still impact ownership or the title's validity. These may include undisclosed heirs, forgeries, or other claims that are not recorded. Since these risks are not easily identified through standard searches, they pose significant threats to property owners.

Apparent off-record title risks include issues that might be visible or known but are not documented in the public record. This could involve disputes between neighbors, unrecorded easements, or other informal agreements that could affect the property's title. Since these risks can be challenging to uncover, title insurance provides essential protection against them.

Understanding these types of risks is crucial for comprehending the scope and significance of title insurance in real estate transactions, as it safeguards against potential financial liabilities from past