Title Insurance: CLTA & ALTA

lenders require a California land title association(CLTA) policy and an American land title association (ALTA) policy. the CLTA policy covers items in the public record, such as mortgage liens, trust deed liens or judgment liens. the ALTA policy is more extensive, insuring against claims found both in the public record and by physically inspecting the house, such as unrecorded easements, boundary disputes and physical encroachments.

the policies also differ regarding how much they cover and who they benefit. the CLTA policy insures to the amount of the purchase price and benefits you. the ALTA policy insures to the amount of the loan and benefits the lender. if you'll occupy the house, the CLTA policy you receive will include the same extended coverage the lender gets on the ALTA policy. if you won't be occupying the house, you can buy the extended coverage for about 30% above the policy cost.

for more info,

www.clta.org

www.alta.org

http://blog.wenxuecity.com/blogview.php?date=201008&postID=23744