Escrow & Title
An 'owner's policy' versus a 'lender's policy' of title insurance in Pennsylvania differs in that:
AThey are identical and interchangeable
BThe owner's policy protects the buyer; the lender's policy protects only the mortgage lender✓ Correct
CThe lender's policy is required; the owner's policy is optional — but both are always purchased simultaneously
DThe owner's policy expires after 5 years; the lender's policy is permanent
Explanation
The lender's (mortgagee's) title insurance policy protects the lender's security interest up to the outstanding loan balance. The owner's title insurance policy protects the property owner's equity.
Related Pennsylvania Escrow & Title Questions
- A lender's title insurance policy protects:
- A Pennsylvania 'interpleader' action by a broker holding disputed earnest money involves:
- A lis pendens recorded against a Pennsylvania property means:
- In Pennsylvania, which professional typically conducts the real estate closing and handles the disbursement of funds?
- A 'satisfaction of mortgage' in Pennsylvania is recorded when:
- A Pennsylvania 'title plant' maintained by a title company contains:
- What is a 'title plant' and how do Pennsylvania title companies use it?
- What is a 'deed in lieu of foreclosure' and how does it work in Pennsylvania?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →