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?
Correct Answer
B) An ALTA lender's policy in the amount of the loan
In California, mortgage lenders typically require an ALTA lender's title insurance policy. This policy protects the lender's security interest in the amount of the loan and provides extended coverage including unrecorded matters. The ALTA lender's policy coverage decreases as the loan is paid down and terminates when the loan is satisfied.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
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.
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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?
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Sandra conveys her home in Bakersfield to her nephew using a grant deed that states 'Sandra Garcia hereby grants to Michael Garcia all of her interest in the property at 123 Oak Street.' The deed contains no additional warranties beyond the statutory language. Which warranties are implied in this California grant deed?