Escrow & Title
In a Minnesota closing, who is responsible for paying the buyer's lender's title insurance premium?
AThe seller, as a customary closing cost
BThe buyer, as it protects the lender providing the buyer's mortgage✓ Correct
CThe title company, as part of their service
DSplit equally between buyer and seller
Explanation
The buyer pays for the lender's (mortgagee's) title insurance policy because it protects the lender that is providing the buyer's mortgage. The seller customarily pays for the owner's title insurance policy (protecting the buyer's ownership interest).
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