Escrow & Title
In a Delaware closing, who typically selects the title insurance company?
AThe lender always selects the title company
BThe seller always selects the title company
CEither party may select, and the party paying typically chooses; RESPA prohibits seller from requiring buyer to use a specific company✓ Correct
DThe Delaware Real Estate Commission assigns title companies randomly
Explanation
RESPA prohibits a seller from requiring a buyer to purchase title insurance from a specific company as a condition of sale. In practice, either party may suggest a title company, and the paying party typically makes the final selection.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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