Escrow & Title
Which type of title insurance policy protects the lender against title defects in Minnesota?
AOwner's policy
BLender's (mortgagee's) policy✓ Correct
CBuyer's extended coverage policy
DSeller's indemnity policy
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's security interest against title defects. It is typically required by lenders in Minnesota for mortgage loans. Its coverage decreases as the mortgage balance is paid down and terminates when the loan is paid off.
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