Escrow & Title
A buyer's lender requires a lender's title insurance policy. This policy protects:
AThe buyer's equity in the property
BThe lender's interest in the property up to the loan amount✓ Correct
CBoth buyer and lender equally
DThe seller from post-sale title claims
Explanation
A lender's title insurance policy (loan policy) protects only the lender's interest up to the outstanding loan balance. Buyers who want protection for their equity must purchase a separate owner's title insurance policy.
Related Mississippi Escrow & Title Questions
- A deed of reconveyance in Mississippi is issued when:
- When appraising title in Mississippi, an examiner discovers an old mortgage from 1985 that was never formally released. This is a:
- In Mississippi, a property sold at a tax sale because the owner failed to pay property taxes is conveyed by a:
- Which party typically purchases the owner's title insurance policy in a Mississippi residential transaction?
- The 'chain of title' for a Mississippi property begins with:
- In Mississippi, a 'special warranty deed' differs from a 'general warranty deed' in that the special warranty deed:
- A Mississippi property owner files for bankruptcy. An automatic stay is issued. This means:
- In a Mississippi real estate closing, the 'settlement agent' typically:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →