Question 2

Title insurance may be used to protect the interest of a buyer.

Title insurance is primarily designed to protect the buyer's ownership rights in real estate transactions. By securing title insurance, buyers can safeguard themselves against potential legal claims or defects in the title that may arise after the purchase.

A) an optionee.

An optionee is a party who has the right to purchase property under a specific agreement. However, title insurance is not typically intended for option agreements, as it is focused on protecting the interests of the actual buyer at the time of closing, rather than someone who has merely an option to buy.

B) a buyer.

This option is correct because title insurance specifically protects the buyer’s legal ownership of the property. It ensures that the buyer is safeguarded against any potential issues with the title that could affect their rights to the property after the transaction is completed.

C) a broker.

A broker acts as an intermediary in real estate transactions and does not hold ownership rights to the property being sold. Title insurance does not serve to protect brokers, as they do not bear the same risks associated with property ownership as buyers do.

D) a tenant.

Tenants do not hold ownership interest in the property; rather, they have a leasehold interest. Title insurance is not applicable to tenants, as it is intended to protect the rights of property owners, specifically buyers who have made a purchase.

Conclusion

In conclusion, title insurance is fundamentally designed to protect the interests of a buyer, ensuring they are shielded from any title-related claims or defects after the purchase. All other options fail to meet the criteria of ownership interest that title insurance is meant to protect, affirming that the correct answer is option B.