Escrow & Title
What is the purpose of ALTA (American Land Title Association) title insurance in Illinois?
ATo insure the structural condition of the building
BTo protect lenders and buyers from title defects, liens, and encumbrances not revealed in the public record✓ Correct
CTo guarantee the accuracy of the property survey
DTo provide homeowner's insurance coverage for the first year
Explanation
ALTA title insurance provides comprehensive protection against title defects, including both recorded and unrecorded claims. Unlike a standard title policy, ALTA extended coverage also protects against matters such as unrecorded easements, survey matters, and rights of parties in possession. Lenders typically require ALTA loan policies, and buyers can purchase ALTA owner's policies.
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