Escrow & Title
Vermont's 'title insurance' differs from a title attorney's 'title opinion' in that:
AThey are identical in function and coverage
BTitle insurance provides financial protection against covered title defects; a title opinion expresses a professional legal judgment but may not provide financial coverage for losses✓ Correct
CTitle insurance is only for buyers; title opinions are for lenders
DTitle opinions are required by Vermont law; insurance is optional
Explanation
A Vermont attorney's title opinion expresses their professional judgment about title quality based on a search of the public records, but if the opinion misses a defect, the buyer's recovery is limited to a malpractice claim. Title insurance provides financial protection against covered defects regardless of how the defect occurred.
Related Vermont Escrow & Title Questions
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