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What is a Lender's Policy?


The lender's policy protects the lender's interest up to the amount of the loan. It covers errors made in connection with the title search and any prior defects in title. The lender's policy is purchased by the buyer/borrower and is usually required as a condition of the loan. However, the lender's policy does not protect the buyer/borrower from any title claims. The policy remains in effect for the life of the loan; therefore, if the property is sold or refinanced, a new lender's policy will be required.