Escrow & Title
In South Dakota, the amount paid for lender's title insurance is typically based on:
AThe purchase price of the property
BThe loan amount at the time of the transaction✓ Correct
CThe replacement cost of the property
DA flat fee regardless of loan amount
Explanation
The lender's title insurance premium is based on the loan amount, since the policy protects the lender's interest up to that amount. As the loan balance decreases, so does the policy's effective coverage.
Related South Dakota Escrow & Title Questions
- When a South Dakota property is 'double insured' (buyer and lender each have title insurance), both policies cover:
- In South Dakota, a 'deed in lieu of foreclosure' is an arrangement where:
- In South Dakota, a closing statement shows the seller's net proceeds. To calculate net proceeds, which of the following is ADDED to the seller's side?
- A South Dakota property is foreclosed on for $150,000 in delinquent property taxes. There are also three mortgage liens. After the tax lien is satisfied, the remaining sale proceeds are distributed to:
- In South Dakota, which of the following encumbrances does NOT need to be removed to deliver 'clear title'?
- An ALTA survey in South Dakota provides more detailed information than a standard boundary survey because it also shows:
- In South Dakota, when a 'quitclaim deed' is given in lieu of foreclosure, the deed transfers to the lender:
- In South Dakota, which of the following types of liens is VOLUNTARY?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →