Escrow & Title
In Texas, a title insurance policy that protects the lender is called a(n):
AOwner's policy
BMortgagee's (lender's) policy✓ Correct
CBinder policy
DGap policy
Explanation
A mortgagee's (or lender's) title insurance policy protects the lender up to the loan amount. An owner's policy protects the buyer's equity. Both are typically issued simultaneously at closing in Texas.
Related Texas Escrow & Title Questions
- A deed in Texas must contain which of the following to be valid?
- Which of the following title defects would MOST likely be covered by a Texas owner's title insurance policy?
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- In Texas, which of the following would most likely appear as an exception in a title insurance commitment?
- In Texas, the purpose of a title search is to:
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- In Texas, title insurance premiums are:
- In Texas, 'title insurance' premiums are filed with and regulated by the:
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