Ontario Mortgage Agent Practice Exam

Title insurance is used in a mortgage transaction to provide protection against any potential errors in the title of the property. This can include things like undisclosed liens, past ownership disputes, or incorrect property boundary lines. Option A is incorrect because it refers to a lender's remedy, not the purpose of title insurance itself. Option B is incorrect because that would be part of the lender's job, not the purpose of title insurance. Option D is incorrect because it is not related to the purpose or role of title insurance in a mortgage transaction.