A leasehold interest in real property ownership is
A.
an usury interest.
B.
a lien interest.
C.
a non insurable interest.
D.
an insurable interest.
The Answer Is:
D
This question includes an explanation.
Explanation:
A leasehold interest is an insurable interest in title insurance. Title insurance can insure different estates or interests in land, including fee simple estates, leasehold estates, life estates, and easements. A leasehold policy protects the insured leasehold interest rather than full ownership of the fee estate. It is not a lien interest, because a leasehold gives the tenant a possessory estate or contractual property interest, not a security interest for debt. It is also not “usury,” which concerns unlawful interest on loans. The Pennsylvania Title Insurance examination outline directly lists leasehold estate and leasehold policy under Title Insurance, confirming that leasehold interests can be insured.
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