Question 77

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

Title insurance is primarily designed to protect the buyer’s interest in a property by covering potential issues related to the title that may arise after the purchase. This includes protection against claims or liens that may not have been discovered during the title search.

A) an optionee.

An optionee refers to a person who holds an option to purchase property, but title insurance does not specifically protect their interests until a transaction is completed. Therefore, while an optionee may have some interests in the property, they are not the primary focus of title insurance coverage.

B) a buyer.

Title insurance is specifically intended to protect the buyer's interest in a property transaction. It safeguards against unforeseen title defects that could affect the buyer's ownership rights, making this option the most accurate in the context of the question.

C) a broker.

A broker facilitates real estate transactions but does not have ownership interest in the property itself. Title insurance does not protect a broker's interests; rather, it is focused on the buyer and their rights to the property.

D) a tenant.

A tenant has rights to occupy property under a lease but is not the owner and does not benefit from title insurance. Title insurance is not designed to protect tenants, as their interests are not related to property ownership.

Conclusion

Title insurance is essential for protecting the buyer's interests in a real estate transaction, ensuring they have ownership free from past claims or disputes. The other options, while related to real estate, do not have their ownership interests safeguarded by title insurance, making option B the only correct choice in this context.