Escrow & Title
The 'closing protection letter' (CPL) in a Utah transaction:
AProtects the buyer from seller fraud
BProtects the lender from losses caused by the title/escrow company's errors, fraud, or negligence in handling closing funds✓ Correct
CGuarantees clear title to the buyer
DIs required by Utah law for all residential closings
Explanation
A closing protection letter (CPL) is issued by the title underwriter and protects the lender from losses if the title/escrow company misappropriates funds or fails to follow closing instructions. It is commonly required by lenders in Utah closings.
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