Which individual is NOT protected under the CPL?

The correct answer is the seller, as they do not receive protections under the Closing Protection Letter (CPL). The CPL is a specific type of insurance that primarily serves to protect the buyer and other parties involved in the transaction, such as the mortgagee. It offers coverage against potential losses due to fraud, misappropriation of funds, or failure to follow the closing instructions provided by the insured parties.

Buyers are protected as they are typically the ones engaging with the closing agent and are at risk during the closing process. The insured is usually defined as the party or parties who are explicitly covered by the CPL, which often includes the buyer and the lender. Mortgagees also receive protections since their interest is in ensuring that the buyer properly secures the title to the property and that the closing process is conducted correctly.

On the other hand, sellers do not benefit from the CPL as their role is generally concluded before the execution of the closing process. They are not the ones exposed to the risks that the CPL is created to mitigate. Instead, their primary concern is to receive the agreed-upon payment upon the sale of the property. Thus, the seller is the individual not protected under the CPL.