Title insurance may be used to protect the interest of

Rationale

A buyer.

Title insurance is primarily designed to protect the interests of a buyer in a real estate transaction by providing coverage against potential defects in the title that could affect ownership rights. This insurance ensures that the buyer's investment is safeguarded from unforeseen legal claims or issues related to the property title.

A (an optionee.) YOUR ANSWER

An optionee is someone who holds an option to purchase a property but does not yet have ownership. Title insurance does not protect an optionee because they do not have a vested interest in the property until the option is exercised and the property is purchased.

B (a buyer.) CORRECT

A buyer is the correct choice as title insurance protects their interest in the property by covering possible legal claims against the title. This insurance ensures that the buyer receives clear ownership and is financially safeguarded from future disputes regarding the title.

C (a broker.) YOUR ANSWER

A broker facilitates transactions between buyers and sellers but does not have ownership interest in the property. Title insurance does not serve to protect brokers, as they are not the parties at risk regarding title defects; rather, they are agents acting on behalf of others.

D (a tenant.) YOUR ANSWER

A tenant occupies a property under a lease agreement but does not have ownership rights. Title insurance is irrelevant to tenants since it pertains to ownership concerns, whereas tenants are primarily concerned with lease and rental agreements.

Conclusion

In real estate transactions, title insurance is crucial for protecting a buyer's ownership rights against potential title defects. While other parties, such as optionees, brokers, and tenants, may play important roles in the transaction, it is the buyer who directly benefits from the protection offered by title insurance, ensuring their investment remains secure.

Title insurance may be used to protect the interest of

A buyer.

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