Illinois Real Estate Exam Practice Question
Title insurance has allowed for more accessible loans for buyers. This is because
Correct Answer: C
Rationale: Title insurance plays a crucial role in facilitating loans by protecting lenders against potential losses from title defects. By ensuring that the property title is clear, it mitigates risks associated with ownership disputes or claims, making lenders more willing to approve loans.
Option A is incorrect; while lender policies may have exemptions, this does not directly enhance loan accessibility. Option B misrepresents the function of title insurance, as it does not cover buyer default but rather title issues. Option D is misleading; while buyers often pay for policies, this does not inherently affect loan accessibility.
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