In the Henry–Susan transaction, how much is charged for title insurance?

In the Henry–Susan transaction, how much is charged for title insurance?

• A. 640
• B. 720
• C. 600
• D. 560

Answer: (A)

Title insurance is priced from the purchase price using a regulated rate schedule, and the owner's policy is a one-time premium paid at closing to protect the buyer’s title. In the Henry–Susan scenario, the rate table for the owner’s policy, applied to the given purchase price, yields six hundred forty dollars. The lender’s policy, if any, would be a separate premium based on the loan amount, but the question is asking for the owner’s title insurance charge in this transaction. So the amount charged is 640 dollars.

Title insurance is priced from the purchase price using a regulated rate schedule, and the owner's policy is a one-time premium paid at closing to protect the buyer’s title. In the Henry–Susan scenario, the rate table for the owner’s policy, applied to the given purchase price, yields six hundred forty dollars. The lender’s policy, if any, would be a separate premium based on the loan amount, but the question is asking for the owner’s title insurance charge in this transaction. So the amount charged is 640 dollars.