Escrow & Title
In Michigan, a title insurance lender's policy (mortgagee policy) protects:
AThe buyer against all title defects
BThe lender up to the loan amount against title defects affecting their security interest✓ Correct
CThe seller's equity in the property
DThe title company against its own errors
Explanation
A mortgagee (lender's) title insurance policy protects the lender up to the outstanding loan balance against title defects that affect the lender's security interest. It does not protect the buyer—an owner's policy provides buyer protection.
Related Michigan Escrow & Title Questions
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