Escrow & Title
A lender's title insurance policy protects:
AThe buyer's equity in the property
BThe lender's security interest in the property up to the loan amount✓ Correct
CBoth the lender and the buyer equally
DThe seller against future claims
Explanation
A lender's (or mortgagee's) title insurance policy protects the lender's financial interest (the loan amount) in case title defects are discovered. It does not protect the buyer's equity. A separate owner's title insurance policy is needed to protect the buyer.
Related Pennsylvania Escrow & Title Questions
- A 'chain of title' in Pennsylvania real estate refers to:
- At a Pennsylvania closing, which document transfers ownership from seller to buyer?
- The transfer of title in a Pennsylvania real estate transaction is complete when the deed is:
- A chain of title refers to:
- A 'satisfaction of mortgage' in Pennsylvania is recorded when:
- Title insurance premiums in Pennsylvania are paid:
- A Pennsylvania ALTA Extended Coverage owner's title insurance policy differs from a standard policy in that it provides additional protection against:
- Under Pennsylvania law, a broker's escrow account may NOT be used to:
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