Escrow & Title
A lender's title insurance policy protects:
AThe buyer's equity in the property
BThe lender's interest (loan amount) against title defects✓ Correct
CThe seller from post-closing title claims
DThe real estate broker's commission
Explanation
A lender's (mortgagee's) title insurance policy protects the lender up to the outstanding loan amount if a title defect emerges. It does not protect the buyer's equity; a separate owner's policy is needed for that.
Related Arkansas Escrow & Title Questions
- Owner's title insurance protects:
- A general lien differs from a specific lien in that it:
- A lender's title insurance policy protects the:
- A deed must contain which of the following to be valid in Arkansas?
- Chain of title refers to:
- What is the primary purpose of a preliminary (pre-closing) title report?
- A deed recorded in the county recorder's office provides:
- In a 'race-notice' recording state (which Arkansas follows), to be protected, a subsequent purchaser must:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →