Escrow & Title

What is the purpose of 'ALTA lender's title insurance' in Georgia?

AA. To protect the buyer's equity
BB. To protect the lender's interest in the property against title defects up to the loan amount✓ Correct
CC. To insure the property against physical damage
DD. To guarantee the borrower's ability to repay the loan

Explanation

Lender's title insurance (ALTA Loan Policy) protects the lender's security interest in the property. It covers the lender if a title defect invalidates or impairs their lien position. The coverage reduces as the loan balance decreases.

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