Finance
What is a gap indemnity in mortgage lending?
AInsurance for gaps in title
BA lender's protection against liens recorded between the title search and recording of the new mortgage✓ Correct
CA guarantee against appraisal gaps
DAn indemnity for missing documents
Explanation
A gap indemnity is provided by the title company to protect the lender against new liens or encumbrances recorded between the date of the title search/commitment and the date the new mortgage and deed are actually recorded.
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