Title insurance may be used to protect the interest of

Rationale

A buyer.

Title insurance is primarily designed to protect the interests of buyers in real estate transactions by ensuring that the title to the property is free from defects or claims that could affect their ownership rights. This coverage provides financial protection against potential legal disputes over property ownership.

A (an optionee.) YOUR ANSWER

An optionee is a party that holds an option to purchase a property but does not yet have ownership. Since title insurance is meant to protect actual ownership interests, an optionee would not be the primary beneficiary of such insurance, as they have not completed the purchase.

B (a buyer.) CORRECT

A buyer is the correct choice because title insurance is specifically intended to safeguard their investment in a property. It ensures that they receive clear and marketable title upon closing, protecting them from future claims or encumbrances that may arise.

C (a broker.) YOUR ANSWER

Brokers facilitate real estate transactions but do not hold title to the property themselves. Title insurance does not cover brokers as they do not have ownership interests that need protection against title defects or claims.

D (a tenant.) YOUR ANSWER

Tenants have rights to occupy a property but do not own it; therefore, they are not the intended beneficiaries of title insurance. Title insurance focuses on ownership interests and protects buyers from issues related to property titles, which does not apply to tenants.

Conclusion

Title insurance serves as a critical safeguard for buyers in real estate transactions, ensuring their ownership rights are protected against potential title issues. While other parties like optionees, brokers, and tenants have varying interests in property dealings, only buyers benefit directly from title insurance, which secures their investment in the property against future claims.

Title insurance may be used to protect the interest of

A buyer.

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