Escrow & Title
In New York, a 'lender's title insurance policy' must be in an amount equal to:
AThe purchase price of the property
BThe original loan amount, with coverage decreasing as the loan is paid down✓ Correct
CThe appraised value of the property
DThe assessed value of the property for tax purposes
Explanation
A lender's (mortgagee's) title insurance policy in New York is written for the original loan amount. Coverage decreases as the loan balance is paid down, reflecting the lender's remaining risk.
Related New York Escrow & Title Questions
- In New York, which type of deed is most commonly used in arm's-length residential sales?
- A title search in New York examines public records to:
- In a New York sale-leaseback transaction, the property owner:
- In New York, a 'tax title' (also called a tax deed) is issued when:
- In New York, real estate closings are conducted by:
- In New York, a 'judgment lien' on real property arises when:
- In New York, 'proration' at closing refers to:
- What does 'chain of title' mean?
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →