An Owner Purchases Real Property for $100,000

question 4

Multiple Choice

An owner purchases real property for $100,000.00 and obtains a loan for $80,000.00 from a lender. An owner's title insurance policy could be purchased for the following amount:

• A) $100,000.00
• B) $80,000.00
• C) $100,000.00 or $80,000.00
• D) none of the above

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Definitions:

Convertible Preferred Stock

A type of preferred stock that holders can convert into a predetermined number of common shares, usually at any time after a specific date.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a company and entitles the holder to a share of the company's profits through dividends and/or capital appreciation.

Dividend

Money distributed to shareholders by a company, usually sourced from its profits.

Cumulative Preferred Stock

A type of preferred stock that accumulates unpaid dividends, which must be paid out before any dividends can be distributed to common stockholders.