During a home purchase in Los Angeles, the buyer's agent explains that in California, the seller customarily pays for a specific type of title insurance. Which policy does the seller typically pay for in a California residential transaction?
Correct Answer
D) CLTA standard policy for the buyer
In California, the customary practice (which varies by county) is for the seller to pay for a CLTA standard owner's title insurance policy for the buyer. This is a standard coverage policy that protects against defects in the public record. If the buyer wants extended ALTA coverage, the buyer typically pays the difference.
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Probate is the legal process by which a deceased person's will is validated by the court and their estate is administered, including the transfer of real property to the named beneficiaries or heirs.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
Recording is the act of placing a document in the public records at the county recorder's office to give constructive notice to the world of an interest in real property. Recording protects the holder's interest against subsequent claims.
More Transfer Of Property Questions
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When the administrator of an estate sells a parcel:
- → Kevin buys a home in Oakland and takes a CLTA standard coverage owner's policy at closing. Eight months later a contractor who had finished work for the prior owner before the sale records a mechanic's lien against the property. Nothing about that work or the contractor's claim appeared in the public record on the date Kevin's policy was issued. How is Kevin's claim under his policy most likely to be treated?
- → Owner A received a deed to a California property in January 2024 and recorded it that same month. In March 2024 the same grantor deeded the property to Owner B, who paid fair market value, searched no records, and recorded immediately. Under California's race-notice recording statute, which owner prevails?
- → Under California law, what is the consequence when a property buyer fails to file the Preliminary Change of Ownership Report (PCOR) at the time the deed is recorded?
- → Under California law, which of the following must the seller of a single-family residence certify to the buyer in writing when the property is transferred?
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- → A California buyer's agent explains the concept of 'split escrow' to her client. In California, what does the term 'split escrow' refer to?
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A California homebuyer is choosing between a CLTA standard title insurance policy and an ALTA extended title insurance policy. Which of the following most accurately describes the difference in coverage between the two policies?
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Jennifer is going through a divorce in California. Her ex-husband agrees to sign over his interest in the family home to her. Which type of deed is MOST appropriate for this transfer?