Finance
A Florida condominium buyer takes out a mortgage. The lender's 'title insurance policy' (mortgagee's policy) protects:
AThe buyer's equity interest
BThe lender's interest up to the amount of the outstanding loan balance✓ Correct
CBoth buyer and lender equally
DOnly claims arising after the closing date
Explanation
The mortgagee's title insurance policy protects the lender's (not the buyer's) financial interest in the property up to the outstanding loan balance. As the loan is paid down, the coverage decreases.
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