Escrow & Title
Which type of title insurance policy protects the lender in an Alabama real estate transaction?
AOwner's policy
BLender's policy (mortgagee policy)✓ Correct
CSeller's policy
DAREC policy
Explanation
A lender's policy (mortgagee policy) protects the lender's interest in the property up to the loan amount. A separate owner's policy protects the buyer's equity interest.
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