Escrow & Title

What is an 'ALTA policy' of title insurance and how does it differ from a standard policy?

AIt is the same as a standard policy with a different name
BAn ALTA extended coverage policy provides broader protection than a standard policy, including coverage for survey matters, easements not shown in public records, and other off-record risks✓ Correct
CALTA policies are only for commercial properties
DALTA policies are issued by the government

Explanation

An ALTA (American Land Title Association) extended coverage policy provides broader protection than a standard coverage policy. ALTA policies cover additional risks including: easements not shown in public records, unrecorded liens, encroachments, survey defects, and access issues. Lenders typically require ALTA lender's policies, and sophisticated buyers often purchase ALTA owner's policies.

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