Finance
A Texas lender requires the buyer to purchase 'lender's title insurance' but not the owner's policy. This protects:
AThe buyer's full equity investment
BOnly the lender's interest up to the loan amount, leaving the buyer's equity uninsured✓ Correct
CBoth the lender and buyer equally
DThe buyer against physical property damage
Explanation
A lender's (mortgagee's) policy only protects the lender's interest. If there is a title defect, the insurer covers the lender's loan balance but not the buyer's equity or down payment. Buyers need an owner's policy for full protection.
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