A Sarasota buyer is purchasing a property where the seller is financing part of the purchase price. The seller wants to ensure their mortgage lien has priority. What type of title insurance should the seller obtain?
Correct Answer
B) A lender's title insurance policy
The seller acting as a lender should obtain a lender's title insurance policy to protect their mortgage interest and ensure lien priority, just like any institutional lender would. Option A is incorrect because an owner's policy protects ownership, not mortgage interests. Option C is incorrect because leasehold policies are for lease interests, not mortgages. Option D is incorrect because extended coverage refers to additional protections, not the basic type of policy needed.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Titles Deeds Recording Question
Background Knowledge for Titles Deeds Recording
Real World Application in Titles Deeds Recording
Common Mistakes to Avoid on Titles Deeds Recording Questions
Related Topics & Key Terms
Key Terms:
More Titles Deeds Recording Questions
In a Tampa transaction, a buyer wants the Florida rule on chain of title. Which statement is correct?
In Florida's recording system, what does 'constructive notice' mean?
In a Tampa transaction, a buyer wants the Florida rule on general warranty. Which statement is correct?
Which answer most accurately states the Florida rule for general warranty?
Sarah is selling her Miami Beach condominium to Robert. At closing, she signs a deed that contains warranties that she owns the property and has the right to convey it, but provides no warranties against defects that existed before she acquired the property. What type of deed did Sarah most likely execute?
- → All of the following are essential elements of a valid deed in Florida EXCEPT:
- → John and Mary own property in Jacksonville as tenants by the entirety. John wants to secretly transfer his interest to his business partner without Mary's knowledge or consent. He executes a quitclaim deed to his partner. What is the effect of this deed?
- → What is the main difference between a general warranty deed and a special warranty deed in Florida?
- → Under Florida law, what does 'constructive notice' mean in the context of recorded deeds?
- → In Florida, what is the primary purpose of the documentary stamp tax on deeds?
- → Which deed is most commonly used in Florida residential transactions?
- → Which answer most accurately states the Florida rule for chain of title?
- → In Florida, all of the following situations would typically be excluded from standard title insurance coverage EXCEPT:
- → Non-single-family real property in Miami-Dade County is conveyed for $220,000. What total deed documentary stamp tax and surtax are due?
- → Adverse possession in Florida requires possession for:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
In Florida, all of the following situations would typically be excluded from standard title insurance coverage EXCEPT:
Next Question
A Gainesville property is being refinanced with a new loan amount of $280,000. The existing lender's title insurance policy was for $250,000. Using Florida's reissue rate of $2.00 per $1,000 for the additional coverage, what is the cost for the new lender's policy?