Escrow & Title

What is 'indemnification' in a Delaware real estate transaction?

ACompensation for moving expenses when relocating
BA legal obligation to compensate another party for losses or damages arising from a specified event or condition✓ Correct
CAn indemnity bond posted by the buyer as security
DA waiver of indemnity for minor property defects

Explanation

Indemnification is an obligation where one party agrees to compensate (hold harmless) another party for specified losses, damages, or legal expenses arising from a particular event or condition. Indemnity provisions are common in purchase agreements and commercial leases.

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