Escrow & Title
What is the difference between an owner's title policy and a lender's title policy?
AThey are identical and always issued together
BThe owner's policy protects the buyer's equity; the lender's policy protects only the lender's loan amount✓ Correct
CThe lender's policy protects the full value of the property
DOnly the lender's policy is required in Idaho
Explanation
A lender's (mortgagee's) title policy protects only the lender's interest (loan balance). An owner's title policy protects the buyer's equity/full ownership interest. Lenders typically require a lender's policy; owner's policies are optional but recommended.
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