Escrow & Title

A Kentucky buyer's lender requires title insurance as a condition of the loan. Who typically pays for the lender's title insurance policy?

AThe seller, as a closing cost
BThe buyer, as a closing cost✓ Correct
CThe lender, from loan origination fees
DThe state, through a title insurance fund

Explanation

The buyer typically pays for the lender's title insurance policy (mortgagee's policy) as a closing cost. This is because the lender requires the insurance to protect their investment, but the cost is passed to the borrower as a loan closing cost.

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