Escrow & Title
A buyer's lender requires the purchase of a lender's title insurance policy. This policy:
AProtects the buyer's equity
BRemains in force until the loan is repaid✓ Correct
CIs optional for the buyer to purchase
DCovers only defects arising after closing
Explanation
A lender's title insurance policy protects the lender's interest and remains in force until the mortgage is paid off. It does not protect the buyer's equity — the buyer needs a separate owner's title insurance policy for that.
Related Georgia Escrow & Title Questions
- The ALTA (American Land Title Association) title insurance policy provides more protection than a standard policy by including coverage for:
- A 'vendor's lien' in Georgia arises when:
- In Georgia, when a buyer purchases property and a third party has an 'unrecorded' claim against the title, the buyer takes the property:
- A 'mechanics lien' in Georgia can be filed against a property when:
- A cloud on title refers to:
- The Loan Estimate (LE) under TRID must be provided to the borrower within how many business days of application?
- A 'FIRPTA withholding' at a Georgia closing is required when:
- RESPA requires that when a seller requires the use of a particular title company as a condition of sale, the seller must:
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