Escrow & Title
What is the purpose of a 'closing protection letter' (CPL) in a South Carolina real estate transaction?
AProtects buyers from seller fraud during closing
BProvides the lender with protection against errors or fraud by the closing attorney✓ Correct
CProtects the closing attorney from malpractice claims
DProtects the buyer's earnest money
Explanation
A closing protection letter (CPL) is issued by a title insurer to a lender, protecting the lender against certain acts of the closing attorney (fraud, theft, failure to comply with closing instructions).
Related South Carolina Escrow & Title Questions
- A title search in South Carolina reveals a 'cloud on title.' This means:
- Which of the following would be found as an exception on a title insurance commitment?
- What is a 'survey' in the context of a South Carolina real estate transaction?
- What is the purpose of a HUD-1 Settlement Statement (or Closing Disclosure) in a South Carolina real estate transaction?
- In South Carolina, what is a 'final walkthrough' before closing?
- In South Carolina, the deed transfer tax (deed recording fee) is charged at what rate?
- In South Carolina, the Register of Deeds is responsible for:
- In South Carolina, a 'lis pendens' is a recorded notice that:
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 →