A title officer in California is reviewing a property's chain of title and discovers several potential issues. Which of the following would NOT typically be covered by a CLTA standard owner's title insurance policy?
Correct Answer
C) An unrecorded easement claimed by a neighbor who has been using a pathway across the property
An unrecorded easement based on use (a prescriptive easement or implied easement) is an off-record matter that is NOT covered by a standard CLTA policy. CLTA policies cover recorded matters and certain specified risks, but they exclude unrecorded interests, rights of parties in possession, and survey matters. An ALTA extended policy would be needed for this coverage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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Marcus is purchasing a condominium in San Francisco. The title company issues a preliminary title report showing a property tax lien from the previous owner. Marcus's agent explains the significance of this report. In California, what is the primary purpose of a preliminary title report?
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Carlos is selling his home in Riverside, California. The buyer's lender requires title insurance. In this transaction, what type of title insurance policy will the lender require?