Tennessee Real Estate License Exam Practice Question
Title Insurance may be used to protect the interest of
Correct Answer: B
Rationale: Title insurance safeguards the financial interests of property buyers by ensuring that the title to the property is clear of any liens or claims. This protection is crucial for buyers, as it provides peace of mind and financial security in their investment.
Option A, an optionee, typically holds a right to purchase but does not have ownership yet, making title insurance unnecessary. Option C, a broker, facilitates transactions but does not have a vested interest in the title itself; their role is more about service than ownership. Option D, a tenant, has rights to occupy the property but does not own it, so title insurance does not apply to their situation.
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