CLTA OWNERS INSURANCE: The most common form of Owner’s insurance. Any commercial property, residential real property, vacant land.

CLTA LENDERS INSURANCE: All types of property, normally of 2^nd Deeds of Trust by individuals and non-Banking or Savings & Loan lenders.

WHAT IS COVERED:
1. Ownership of the property.

2. All record matters affecting title are shown in the policy in order of their priority.

3. There is access if the property abuts upon an open public, dedicated street.

4. There are no forgeries or failed conveyances in the chain of title.

5. The insured has a marketable interest in the real property.

6. With regard to lender’s coverage, it covers:

The priority of the insured mortgage.

The invalidity or unenforcability of the lien of the insured assignment.

The invalidity or unenforceability of the lien of insured mortgage on the title.

The policy DOES NOT COVER among other things, the following:

1. Matters which a correct survey would show.
2. Unrecorded matters.
3. Matters which a physical inspection of the property would disclose.
4. Right of parties in possession.
5. Unpatented water and mineral rights.
6. Matters known, created, or assumed by the insured.

ALTA RESIDENTIAL OWNERS POLICY: The ALTA RESIDENTIAL POLICY is an owner’s Policy insuring owners of a 1-4 family residential lot or condominium unit. It has been drafted in an easy to read language. This policy, IN ADDITION TO THE BASIC COVERAGE PROVIDED BY ALL TITLE INSURANCE POLICIES, protects the insured against losses cussed by:

1. Mechanical Liens (labor and material liens) arising out of work done on the property, which the insured did not agree or agree to pay for.
2. Major encroachments-The insured is protected against forced removal of an existing structure (other than a boundary wall or fence) because it extends onto adjoining land or onto an easement.
3. Unrecorded interest arising from off record leases, contracts or options.
4. Zoning Compliance (as long as property in question and zoning are both residential).
5. CC&R’s Compliance.

ALTA LENDERS POLICY: For institutional lenders only – Banks, Savings & Loans, Federally Insured loans, Insurance Companies.

Insurer lender priority and the fact that title are marketable. Covers both recorded matters as well as recorded matters such as:

1. Encroachments.
2. Unrecorded Easements.
3. Access.
4. Loss of Priority.
5. Unrecorded Liens and Encumbrances.

As you can see, the coverage is quite broad. We may require an inspection or a survey. This policy is issued on all types of real property. The rate used is the same as that which you would use for an owner policy (ALTA Residential or CLTA Owners) depending on the type of property being covered.

ALTA OWNERS POLICY: (Extended Coverage)

Do not confuse this with an ALTA Residential Owners. This is the broadest form of insurance given in California. This policy requires an ALTA survey to be provided to the Title Company. In addition to the coverage given by a CLTA policy, it insures:

1. Encroachments (not disclosed in the policy).
2. Access.
3. Rights of parties in possession.
4. Unrecorded liens and encumbrances.
5. Taxes.
6. Matters which a correct survey would show.

DOES NOT COVER MATTERS KNOWN, CREATED, OR ASSUMED BY OUR INSURED.

As a result, when this type of coverage is requested, we may require:

1. An ALTA Survey ($3,000 to $7,000 costs).
2. A field inspection.
3. A check with all utilities to make sure they have no unrecorded easements.
4. Copies of all leases and/or tenant list.

Since these requirements take time to complete, plan ahead. Further, we will show as exceptions in the policy all matters we find, so there may be an amended preliminary report issued after the inspection.

While this type of policy can be issued for all types of property, the requirements for its issuance are the same on all properties.