Escrow & Title
In South Dakota, an owner's title insurance policy protects:
AThe lender's interest in the property
BThe buyer/owner's equity in the property✓ Correct
CThe real estate broker from E&O claims
DThe escrow company from title disputes
Explanation
An owner's title insurance policy protects the buyer/owner's equity investment in the property for as long as they or their heirs hold an interest.
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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.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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