Lender’s Title Insurance Policy
When you finance the purchase of land the lender will require that you obtain an insurance policy that will protect them from claims against the property before the loan was closed. This could be liens filed by contractors, or even a claim by previous heirs. The lender is the insured party and receives the funds to pay the loan off in the event of an unsettled claim. The borrower doesn’t receive anything for their equity in the property.