Escrow & Title
What is the difference between an 'owner's title insurance policy' and a 'lender's title insurance policy'?
AThey cover the same things; only the price differs
BAn owner's policy protects the buyer's equity; a lender's policy protects the lender's loan amount. Both are usually obtained in a purchase transaction✓ Correct
CA lender's policy provides broader coverage than an owner's policy
DOnly one type of policy is used per transaction
Explanation
The owner's (ALTA Homeowner's) policy protects the buyer's equity and ownership interest. The lender's (ALTA) policy protects the lender's interest up to the loan balance. In California purchases, both are typically obtained — the seller customarily pays for the owner's policy (varies by county) and the buyer pays for the lender's policy.
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