Escrow & TitleIntermediateAlaska Exam

The 'ALTA' (American Land Title Association) owner's policy compared to a standard owner's policy provides additional coverage for:

AEnvironmental contamination
BMatters that could be discovered by a physical inspection or accurate survey, such as encroachments and boundary disputesCorrect
CProperty damage from natural disasters, though many experienced professionals would note some exceptions depending on the circumstances
DLosses due to changes in zoning

Why Matters that could be discovered by a physical inspection or accurate survey, such as encroachments and boundary disputes Is Correct

Answer B: Matters that could be discovered by a physical inspection or accurate survey, such as encroachments and boundary disputes

The ALTA extended coverage owner's policy covers additional risks not covered by a standard policy, including unrecorded easements or claims that would be revealed by an accurate survey, inspection of the property, or questioning of persons in possession. It is often required for commercial transactions.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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