Escrow & Title
What is the purpose of a 'Closing Protection Letter' (CPL) issued by a Mississippi title insurance underwriter?
ATo guarantee the property will appreciate in value
BTo protect the buyer and lender against loss due to the closing agent's failure to follow instructions or misappropriation of funds✓ Correct
CTo insure the buyer against future title defects
DTo certify the property's physical condition
Explanation
A Closing Protection Letter (CPL) is issued by the title insurance underwriter to the lender (and sometimes the buyer) to provide coverage against losses resulting from the closing agent's failure to follow closing instructions or misappropriation of closing funds.
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