Escrow & Title
A Vermont buyer's lender requires title insurance. Which policy protects the lender's interest?
AOwner's title insurance policy
BLender's (mortgagee's) title insurance policy✓ Correct
CHazard insurance policy
DPMI policy
Explanation
The lender's (mortgagee's) title insurance policy protects the lender's security interest up to the loan amount. The owner's title insurance policy separately protects the buyer's equity. Lenders almost always require a mortgagee's policy as a loan condition.
Related Vermont Escrow & Title Questions
- Vermont's 'judgment lien' against a property owner attaches to:
- What is a 'title insurance commitment' (also called a title binder) in a Vermont real estate transaction?
- Vermont's Property Transfer Tax is paid by the:
- Vermont's 'endorsement' to a title insurance policy is used to:
- A Vermont subordination agreement in a real estate transaction means:
- Title insurance in Vermont protects the policyholder against:
- Vermont's 'lis pendens' protects a plaintiff in a property-related lawsuit by:
- Vermont's 'survey endorsement' to a title policy may remove the standard survey exception if:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →