Escrow & Title

In Montana, a buyer's title insurance owner's policy should be obtained for an amount equal to:

AThe mortgage loan amount
BThe full purchase price (or current market value if greater)✓ Correct
COnly the equity portion after the down payment
DThe assessed value for property tax purposes

Explanation

An owner's title insurance policy should cover the full purchase price of the property (and ideally the current market value if higher). This ensures the full investment is protected against title defects. An amount less than the full purchase price leaves some equity unprotected.

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