Final answer:
The correct answer is C. Mortgage Insurance. It is a form of indemnity that can protect both the buyer and the buyer's lender in a mortgage transaction.
Step-by-step explanation:
The correct answer is C. Mortgage Insurance. Mortgage insurance is a form of indemnity that can protect both the buyer and the buyer's lender. It is typically required when the buyer is making a down payment of less than 20% on a home, and it protects the lender in case the buyer defaults on the loan.
For example, if a buyer purchases a house with a down payment of only 10% and later defaults on the mortgage, the lender can file a claim with the mortgage insurance company to receive compensation for their losses.
Mortgage insurance does not protect the buyer in the same way that property insurance would protect against damage to the home, but it does provide financial protection for all parties involved in the mortgage transaction.