Finance
In South Dakota, what is the primary purpose of a title insurance policy obtained at closing?
ATo protect against future physical damage to the property
BTo insure against losses from defects in title existing before the policy date✓ Correct
CTo guarantee the property's market value
DTo protect the lender against the borrower's default
Explanation
Title insurance protects the policyholder (either the lender or buyer/owner) against financial losses from title defects, liens, or encumbrances that existed before the policy was issued but were not discovered in the title search.
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