Escrow & Title
In South Carolina, what is 'indemnification' in title insurance?
AA process to recover title after foreclosure
BThe insurer's obligation to compensate the insured for covered losses, defending against claims and paying damages up to the policy limit✓ Correct
CA government program indemnifying property owners against losses
DA pledge by the buyer to indemnify the seller
Explanation
Indemnification in title insurance means the insurer is obligated to compensate the insured for financial losses resulting from covered title defects, up to the policy amount. This includes paying for the defense of covered title claims and paying any resulting judgments.
People Also Study
Related South Carolina Questions
- In South Carolina, who is typically responsible for paying for the owner's title insurance policy?Escrow & Title
- An owner's title insurance policy in South Carolina protects:Escrow & Title
- In South Carolina, which party typically pays for the lender's title insurance policy?Escrow & Title
- Which type of title insurance policy protects a mortgage lender in South Carolina?Escrow & Title
- A South Carolina purchase contract that includes the phrase 'subject to satisfactory inspection' means:Contracts
- The 'bundle of rights' in South Carolina real estate includes the right to 'encumber' property. This means the owner may:Property Ownership
- A South Carolina home is insured at 80% of its $400,000 replacement cost. If there is a $160,000 fire loss, how much will insurance pay under the co-insurance formula?Real Estate Math
- In South Carolina, what is a 'home warranty' and how does it differ from title insurance?Contracts
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Math Concepts
Study This Topic
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →