CH 5 Flashcards
An ALTA extended coverage loan policy differs from the standard coverage policy by offering-
An Alta extended coverage loan policy covers matter not of record—-
A lender who discovers that the borrowers property has no access to a public street would be protected under
Defects such as no access to a public street are covered by an ALTA extended coverage policy —-
What are 3 things covered under an ALTA policy and 1 thing that is not
Not- Liens created by the insured. Defects, but no damage or loss is incurred.
Covered- Ownership of the property Access to the property Marketability Liens or Encumbrances Various title defects, such as forged; documents, fraudulent transfers, or transfers by bankrupt or incapacitated persons.
The CLTA standard title policy is
the most frequently used
The CLTA standard title policy
Cover forgery and fraud
Name 3 conditions that would be covered under a CLTA policy and 1 that would not.
Not- Liens created by the insured
Covered-
The additional coverage offered by an ALTA policy includes which of the following
ALTA polices cover matters disclosed by physical inspection, inquiries of the occupants, or by a recent survey
Encumbrances against property consist of
Encumbrances include taxes, assessments, liens, restrictions, easements, encroachments, and legal actions.
Eminent Domain is
The power of condemnation by a public agency
The trust deed is
Used almost exclusively in CA. Legal title in real property is transferred to a trustee, which holds it as security for a loan (debt) between a borrower and lender.
Deficiency judgement
unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full.
Endorsements
A title endorsement is an addition or limitation of coverage that is attached to a title insurance policy. Endorsements provide coverage that tailors the policy to fit the needs of the insured for a specific transaction.
Liens
a right to keep possession of property belonging to another person until a debt owed by that person is discharged.
Right of redemption
Judicial foreclosures are rare in California. A judicial foreclosure allows the lender to get a deficiency judgment against the borrower. BUT the homeowner has the “right of redemption,” which allows him or her to buy the home back from the successful bidder at the auction for 1 year after the sale.
Spurious title
Not proceeding from the true source; not genuine; counterfeited.
