Escrow & Title
Title insurance that protects the lender against losses due to title defects is called:
AOwner's title insurance (ALTA Owner's Policy)
BStandard coverage policy
CLender's title insurance (ALTA Loan Policy)✓ Correct
DExtended coverage policy
Explanation
A lender's title insurance policy (ALTA Loan Policy) protects the lender's interest up to the loan amount. Most lenders require this as a condition of the loan. An owner's policy separately protects the buyer.
Related California Escrow & Title Questions
- When does legal title to a property pass to the buyer in a California transaction?
- What is a 'grant deed'?
- A mechanic's lien can be filed by:
- What is a 'chain of title'?
- In California, for how long must a mechanic's lienholder file a lawsuit to enforce the lien after recording it?
- In California, a deed of trust involves three parties. Who are they?
- Who selects the escrow company in California?
- A quitclaim deed transfers:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →