Escrow & Title

At a South Dakota closing, a buyer's lender requires a lender's title insurance policy. Who typically pays for this policy?

AThe seller
BThe buyer✓ Correct
CThe title company
DThe South Dakota Real Estate Commission

Explanation

The buyer typically pays for the lender's title insurance policy, which is required by lenders to protect their interest in the mortgaged property. The buyer may also purchase a separate owner's policy.

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