A Lender's Policy of Title Insurance.

During a real estate closing for a residential purchase of a brand new single family home, you took out a mortgage in order to purchase the home and were required by your lender to obtain a Lender's Policy of Title Insurance. A copy of the policy is located at the above link. After purchasing the home you found out that there are some mechanic's liens on the property relating to a fence that a sub-contractor installed but was never paid for by the original builder/contractor. This was not found during the title history report prepared by the closing company. Will your title insurance defend against this claim and help you quiet your title, should you need legal assistance in removing this encumbrance? Explain in detail why or why not, and don't forget to note the section on the Title Policy that supports your answer.

Sample Solution