Escrow & Title
A CLTA (California Land Title Association) title policy differs from an ALTA (American Land Title Association) extended coverage policy primarily in that CLTA does NOT cover:
AForged deeds in the chain of title
BMatters that would be revealed by a physical inspection or survey of the property✓ Correct
CErrors in public records
DUndisclosed heirs claiming an interest
Explanation
The standard CLTA policy covers title defects discoverable in the public record but specifically excludes matters that would be revealed by a physical survey or inspection, such as encroachments, boundary disputes, and unrecorded easements. The ALTA extended coverage policy covers these survey-related risks, which is why lenders typically require ALTA policies.
Related California Escrow & Title Questions
- What is a 'quiet title action'?
- A 'mechanic's lien' can be filed by:
- A quitclaim deed conveys:
- RESPA (Real Estate Settlement Procedures Act) requires lenders to provide buyers with a Closing Disclosure at least how many business days before closing?
- Which of the following liens would have PRIORITY over a previously recorded first mortgage in California?
- In California, an escrow holder is considered a dual agent for both buyer and seller. This means the escrow holder:
- In California, escrow is considered 'closed' when:
- Which document gives the escrow holder authority to proceed with a transaction?
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