Escrow & TitleIntermediateCalifornia Exam

What is the 'ALTA' and 'CLTA' in title insurance?

ATwo competing title insurance companies, consistent with standard title insurance practice, under standard California escrow and title practice, consistent with customary closing procedure

BAmerican Land Title Association (ALTA) and California Land Title Association (CLTA) — organizations that establish standard title insurance policy formsCorrect

CThe two types of escrow licenses, per customary closing procedure in California, under standard California escrow and title practice, consistent with customary closing procedure

DFederal agencies regulating title companies, under standard California escrow and title practice, consistent with customary closing procedure

Why American Land Title Association (ALTA) and California Land Title Association (CLTA) — organizations that establish standard title insurance policy forms Is Correct

Answer B: American Land Title Association (ALTA) and California Land Title Association (CLTA) — organizations that establish standard title insurance policy forms

ALTA (American Land Title Association) and CLTA (California Land Title Association) are industry associations that publish standardized title insurance policy forms used in California and nationwide. CLTA policies provide basic coverage; ALTA Homeowner's policies offer extended coverage including survey-related matters.

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

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

People Also Study

Key Terms to Know

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Study This Topic

Property Ownership Guide

Practice More California Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free California Quiz →