California · Chapter 32 of 59

Title Insurance

Standard (CLTA) vs. extended (ALTA) coverage, owner's vs. lender's policies, title search, and title defects.

20-minute read · Built for the DRE Salesperson Exam

CLTAALTAowner's policylender's policytitle searchchain of titlecloud on titlepreliminary title report

What Title Insurance Covers

Title insurance protects against losses from title defects that existed BEFORE the policy was issued. Unlike other insurance (which covers future events), title insurance covers past events that may cause problems. One-time premium paid at closing. Covers: undisclosed liens, forged documents, fraud in prior transactions, errors in public records, disputes about boundary lines, and more.

Insurance Code §12340

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