C is corrent. Title insurance insures against all defects of record and defects the grantee may be aware of. Thus, a title insurance company would be liable to a land purchaser for recorded easements.
A is incorrect. Title insurance does not cover closing costs.
B is incorrect. Title insurance covers only defects of record. Since the assessment was unrecorded, it is not covered by the title insurance.
D is incorrect. Title insurance does not cover closing costs or zoning violations.
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