David Kim inherited a property in Queens, NY, from his grandmother. He discovers that his grandmother's will was never properly probated, and another family member is claiming ownership rights. David had purchased an owner's title insurance policy when the property was originally transferred to him through the estate. How will the title insurance policy likely respond?
Correct Answer
A) Coverage depends on whether the probate defect existed before the policy was issued
Title insurance coverage depends on when the defect originated. If the improper probate was a pre-existing condition that affected the title before the policy was issued, it would typically be covered. However, if the probate issue arose after the policy was issued, it might not be covered.
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