Escrow & Title

A lender's title insurance policy in Washington protects:

AThe buyer from title defects
BThe lender's interest up to the loan amount against title defects✓ Correct
CThe escrow company from errors
DBoth the buyer and lender equally

Explanation

A lender's title insurance policy (also called a mortgagee's policy) protects the lender's interest up to the outstanding loan balance against title defects. Buyers need a separate owner's policy for their own protection.

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