The Purpose of Title Insurance Is To

question 71

Multiple Choice

The purpose of title insurance is to:

• A)transfer ownership of property.
• B)reduce the chance of a decrease in property value.
• C)protect an owner from unforeseen property claims.
• D)protect an owner from changes in mortgage interest rates.
• E)cover the closing costs of a real estate transaction.

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Definitions:

Deadweight Loss

An economic inefficiency that occurs when there is a difference between the supply and demand equilibrium caused by market distortions, resulting in loss of economic efficiency.

Surcharge

An additional charge, tax, or cost added to the usual cost or to the price of a transaction.

Professional Basketball Game

An organized, competitive basketball contest played by professionals in a league, often characterized by high skill levels and entertainment value.

Deadweight Loss

A loss in economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unattainable.