Escrow & Title
When a buyer in Texas receives clear title at closing, the title company issues an owner's title insurance policy. The policy amount is typically:
AEqual to the loan amount
BEqual to the purchase price of the property✓ Correct
CA flat fee set by TREC
DEqual to the property's appraised value
Explanation
The owner's title insurance policy amount is typically set at the purchase price of the property—the amount the buyer paid. The Texas Title Insurance Premium is set by the Texas Department of Insurance and is based on the amount of insurance. The policy amount represents the maximum coverage.
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