Escrow & Title
What is 'title insurance' for a lender versus 'title insurance' for an owner in Delaware?
ABoth policies are identical in coverage and cost
BA lender's (mortgagee's) policy protects the lender's security interest up to the loan amount; an owner's (mortgagor's) policy protects the buyer's ownership interest up to the purchase price — both should be obtained✓ Correct
CLender policies are required by law; owner policies are never required
DOwner policies cover all closing costs; lender policies only cover the deed
Explanation
A lender's title policy protects the lender's mortgage lien — lenders almost always require it. An owner's policy protects the buyer's ownership interest.
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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.
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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