Escrow & Title
In South Dakota, 'indemnification' in a real estate context refers to:
AOne party's obligation to compensate another for specified losses✓ Correct
BThe seller's guarantee of property condition
CThe lender's commitment to fund the loan
DThe title company's certification of clear title
Explanation
Indemnification is a promise by one party to compensate another for specified losses or damages. In real estate, indemnification provisions appear in contracts and title insurance policies.
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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.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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