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:

Stockholders' Equity

The portion of a company's capital that comes from the investment of its shareholders, represented by the shares issued to them.

Profitability

The degree to which a company or business activity makes a profit, typically measured over a specific period of time.

Leverage

The use of borrowed funds to increase the potential return of an investment.

Solvency

A measure of a company's ability to meet its long-term financial obligations, reflecting its financial stability and health.