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The lender's title insurance policy insures over mortgage but a owner's title insurance policy protects the buyer against all title related issues, as well as certain known or contemplated defects. True or False

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Final answer:

True. The lender's title insurance policy primarily safeguards the mortgage lender's interests, while the owner's title insurance policy provides broader protection for the buyer against various title-related problems, including known or anticipated issues.

Step-by-step explanation:

True. The lender's title insurance policy primarily safeguards the mortgage lender's interests, while the owner's title insurance policy provides broader protection for the buyer against various title-related problems, including known or anticipated issues.

Lender's title insurance policies are designed to protect the lender's investment in the property, ensuring that the mortgage is secure against any unforeseen title defects. Conversely, the owner's title insurance policy serves as a comprehensive shield for the property purchaser. It covers a wider range of potential problems related to the title, including issues that might have been known or anticipated at the time of purchase. This broader coverage can include protection against undisclosed heirs, forged documents, or other hidden defects in the property's title history.

Ultimately, while both policies offer protection, the owner's title insurance policy provides more comprehensive coverage to the buyer, encompassing a broader spectrum of potential risks and issues related to the property's title.

Correct answer: true (T)

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