Escrow & TitleIntermediateDelaware Exam

What is 'ALTA title insurance' and how does it differ from standard title insurance in Delaware?

AALTA title insurance is only ever available for commercial properties; standard policies exclusively cover residential transactions instead, under standard practice

BALTA (American Land Title Association) policies provide broader coverage than standard policies, including survey-related issues, encroachments, and access rightsCorrect

CALTA title insurance is a government-sponsored program for low-income buyers

DALTA policies do not cover pre-existing title defects, unlike standard policies

Why ALTA (American Land Title Association) policies provide broader coverage than standard policies, including survey-related issues, encroachments, and access rights Is Correct

Answer B: ALTA (American Land Title Association) policies provide broader coverage than standard policies, including survey-related issues, encroachments, and access rights

ALTA title insurance policies use standardized American Land Title Association forms with broader coverage than basic policies. ALTA extended coverage policies cover survey-related issues, encroachments, and access rights.

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.

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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.

Private Mortgage Insurance (PMI)

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

Deed

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

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