Finance
A lender's title insurance policy in Virginia protects:
AThe buyer against all title defects
BThe lender against losses from title defects up to the outstanding loan balance✓ Correct
CThe seller against post-closing title claims
DThe escrow agent against errors in the closing
Explanation
A lender's (mortgagee's) title insurance policy protects the lender against losses from title defects. The coverage decreases as the loan balance is paid down. It does not protect the buyer/owner.
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