Finance
What is a 'lender's title policy' endorsement in Delaware?
AAn endorsement the lender places on the borrower's title insurance policy
BAn additional coverage provision added to a standard title insurance policy to cover specific risks not included in the base policy — such as survey/location, zoning, environmental liens, or access endorsements✓ Correct
CA government endorsement of a private lender's practices
DAn endorsement requiring the property to meet FHA standards
Explanation
Title insurance endorsements expand coverage beyond the standard policy for specific risks. Common ALTA endorsements used in Delaware commercial transactions: survey/location (coverage for matters a current survey would reveal), access (confirming access to a public road), zoning (coverage if zoning prevents the intended use), and environmental liens.
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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.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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