Escrow & Title
A buyer in Washington purchases a home and does not obtain owner's title insurance. Two years later, a prior unrecorded deed surfaces. The buyer:
AIs protected by the lender's title policy
BFaces potential loss of the property with no insurance coverage for their equity✓ Correct
CIs protected by Washington's marketable title act
DCan recover from the seller's escrow account
Explanation
A lender's title insurance policy only protects the lender's interest (the loan amount). Without an owner's title insurance policy, the buyer has no coverage for their equity or purchase price if a prior title claim surfaces.
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