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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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?