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Which statement best describes title insurance in Hawaii?

Correct Answer

B) Title insurance protects against undiscovered title defects, and buyers should verify whether the property is recorded in the regular Bureau of Conveyances system or the Land Court system.

Title insurance protects against undiscovered defects in title. Hawaii has a dual recording system — the Bureau of Conveyances (regular system) and the Land Court (Torrens system) — which adds complexity to title searches and makes understanding which system applies to a given property an important part of the closing process.

Answer Options
A
Title insurance is not available in Hawaii because the state uses a government-guaranteed title system for all properties.
B
Title insurance protects against undiscovered title defects, and buyers should verify whether the property is recorded in the regular Bureau of Conveyances system or the Land Court system.
C
Title insurance in Hawaii covers physical damage to the property caused by natural disasters such as lava flows and hurricanes.
D
Title insurance guarantees the buyer's mortgage interest rate will not change between contract and closing.

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Related Topics & Key Terms

Related Topics:

Bureau of ConveyancesLand Court / Torrens systemowner's vs. lender's title insuranceHawaii Great Maheleclosing costs

Key Terms:

title insuranceBureau of ConveyancesLand CourtTorrens systemtitle defects
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