Escrow & Title
An 'indemnification clause' in a real estate contract or escrow agreement provides that:
AThe buyer receives a full refund if the deal falls through
BOne party agrees to hold the other harmless from specified liabilities or losses✓ Correct
CThe escrow agent is the final authority on disputes
DThe title company insures against all future claims
Explanation
An indemnification clause requires one party to compensate another for specified losses, damages, or liabilities. In real estate, sellers often indemnify buyers against undisclosed liens, and parties may indemnify escrow agents for following instructions.
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