Escrow & Title

In South Carolina, what is a 'closing protection letter' (CPL) in title insurance?

AA letter protecting the buyer from closing cost surprises
BA document issued by a title insurer protecting the lender and/or buyer against loss due to closing agent fraud or negligence✓ Correct
CA letter confirming the closing date and time
DA letter protecting the title insurer against claims

Explanation

A closing protection letter (CPL) is issued by a title insurer to protect the lender (and sometimes the buyer) against loss resulting from the closing agent's fraud, theft of funds, or failure to follow the lender's closing instructions. It is commonly required by lenders.

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