Escrow & Title

A standard coverage title insurance policy differs from an ALTA (American Land Title Association) extended coverage policy in that the standard policy does NOT cover:

AMatters of record at closing
BSurvey matters, unrecorded easements, and rights of parties in possession that are not shown in the public records✓ Correct
CForged deeds
DErrors in the public records

Explanation

A standard coverage title policy protects against defects that would be discovered by searching the public records — forged deeds, unreleased liens, recording errors. An extended coverage (ALTA) policy additionally covers matters that would be discovered by a physical survey or inspection of the property — unrecorded easements, encroachments, rights of parties in possession, survey matters. Lenders typically require ALTA extended coverage policies; buyers may opt for either standard or extended coverage.

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