Who benefits from a lender's title insurance policy?

A lender's title insurance policy primarily benefits the lender financing the property purchase. This type of insurance protects the lender against any potential claims or issues that might arise related to the title of the property after the loan has been secured. If any liens, encumbrances, or defects in the title surface that could affect the lender's security interest in the property, the lender's title insurance helps cover the financial implications.

By ensuring that the title is free from defects or claims that could jeopardize their investment, the lender can have the confidence to offer the loan, knowing they have a safeguard in place. This is particularly crucial in real estate transactions since the lender is often the party with the most at stake in the event of title-related problems, as their financial recovery hinges on the value and marketability of the property.

The other options do not accurately reflect who directly benefits from the lender's title insurance policy, highlighting why they are not the correct responses.