What is the difference between an alta and clta policy

When someone is considering a purchase of a property, it is important that the property has marketable title - that is, clear of any liens, judgments, defects or encumbrances. Title insurance is designed to protect property owners and mortgage lenders against losses which result from imperfections or omissions in title.

Prior to the close of escrow, the title company will examine all records documenting the chain of title. They will review records from the county recorder's office and from various tax agencies so that both the owner and lender are assured that a thorough search has been made of all public records affecting the property.

The only advantage of this policy is that the premium is lower. If you are a seller and have agreed to provide the buyer with a title policy you may want to stipulate that you are providing a CLTA policy.

However, expect a savvy buyer or a buyer with savvy representation to fight back with you on this in California. However, it also includes additional protections including, but not limited to:. The bank is in the business of reducing risk. They are willing to give buyers loans because those loans are backed by real estate, but that real estate may not do them any good if there are clouds on title.

Motion Picture Entertainment Financing. Commercial Loans. FHA Home Loans. HUD Reverse Mortgage. Private HardMoney. Streamline Refinance. USDA Loans. BankerBroker Documents. FHA Links. Link Exchange. Look Up License. Mortgage Terminology. Property Tax Links. REO Links. National Mortgage News. What is the difference, aside from the price — quite a bit. The CLTA policy covers matters affecting title, that occurred in the past and that are not specifically excluded from the policy terms.

CLTA policies are obtained by Buyers to insure their interest in the title to the property conveyed to them by the Sellers. The matters generally covered by a CLTA policy are:. The CLTA policy may also be ordered by lenders, normally on second deeds of trust by individuals and non-banking or savings and loan lenders.