Escrow & Title
What is a 'leasehold title insurance' policy and when is it used in Illinois?
AA policy insuring the landlord's fee simple ownership of leased property
BA title insurance policy protecting a tenant's (lessee's) interest in a long-term lease, insuring against title defects that affect the leasehold✓ Correct
CInsurance protecting the tenant against lease termination
DA standard homeowner's policy for tenants who lease rather than own
Explanation
Leasehold title insurance protects the tenant's interest in a long-term lease (typically ground leases of 40+ years). The policy insures that the lease is valid and that the tenant's interest won't be terminated by title defects affecting the landlord's ownership.
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