Escrow & Title
A lender's title insurance policy in NC protects:
AThe buyer against title defects
BThe lender against title defects up to the loan amount✓ Correct
CBoth the buyer and lender equally
DFuture owners of the property
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's financial interest up to the outstanding loan balance. It does NOT protect the buyer/owner — they need a separate owner's title insurance policy.
Related North Carolina Escrow & Title Questions
- At the NC closing table, the closing attorney is responsible for all EXCEPT:
- In NC, the seller's attorney typically handles which task at closing?
- A 'marketable title' in NC is one that:
- The trustee in a North Carolina deed of trust holds:
- A lender's title insurance policy (loan policy) in NC protects:
- In NC, a 'Closing Disclosure' must be delivered to the buyer at least how many business days before consummation of the loan?
- A 'FIRPTA withholding' at a NC closing applies when:
- A 'title binder' in NC real estate provides:
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