Closing

Question 1

Insurance which protects the lender in the event that previously-undetected encumbrances on a property are discovered can best be described as:

A.A lender’s policy of title insurance
B.Endorsement coverage on a title insurance policy
C.An owner’s policy of title insurance
D.Private mortgage insurance

Answer 1

The answer is a lender’s policy of title insurance. Insurance which protects the lender in the event that previously-undetected encumbrances on a property are discovered is a lender’s policy of title insurance.