Escrow & Title
A title insurance policy that protects the lender's interest is called a:
AStandard owner's policy
BALTA lender's policy✓ Correct
CWarranty deed endorsement
DGap coverage policy
Explanation
An ALTA (American Land Title Association) lender's policy protects the lender's interest in the property up to the loan amount. It does not protect the buyer/owner — a separate owner's policy is needed for that.
Related Alabama Escrow & Title Questions
- Which of the following items is typically a CREDIT to the buyer on the closing disclosure?
- A buyer purchases an owner's title insurance policy. This policy protects the buyer:
- In Alabama, a title search examines public records to:
- Proration of property taxes at closing means:
- An 'as-is' clause in a deed has what effect?
- An Alabama title search covering the last 40 years is considered adequate under what legal concept?
- Which of the following would NOT be insured under a standard title insurance policy?
- Constructive notice is provided by:
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