Escrow & Title

Owner's title insurance protects:

AThe lender against loss if the borrower defaults
BThe buyer against loss from title defects that existed before the policy date✓ Correct
CThe seller against claims arising after the sale
DThe escrow agent against errors in closing documents

Explanation

Owner's title insurance protects the buyer from financial loss due to title defects, liens, encumbrances, or other title problems that existed prior to the policy date but were not discovered in the title search. The policy protects the owner as long as they hold an interest in the property.

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