Escrow & Title
The ALTA lender's title insurance policy protects the lender for the life of the loan up to:
AThe original purchase price
BThe outstanding loan balance✓ Correct
CThe full market value of the property
DTwice the original loan amount
Explanation
A lender's title insurance policy protects the lender up to the outstanding loan balance, and the coverage decreases as the loan is paid down.
Related Alabama Escrow & Title Questions
- A deed that conveys property 'to John Smith and his heirs' creates which type of estate?
- A special warranty deed in Alabama is one in which the grantor warrants the title against:
- A buyer who takes title without knowledge of a prior unrecorded deed has what type of protection under Alabama's recording statutes?
- A preliminary title report (title commitment) serves what purpose?
- Proration of property taxes at closing means:
- Which document transfers title from seller to buyer in a real estate transaction?
- Which of the following items is typically a CREDIT to the buyer on the closing disclosure?
- The Closing Disclosure (CD) must be provided to the buyer at least how many business days before closing?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →