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Pass California

Transfer of Property, 8% of the examination

Title insurance

An indemnity policy protecting against loss from defects in title.

A standard CLTA policy covers matters of record and certain off-record risks such as forgery and lack of capacity, subject to the policy's terms and exclusions. An ALTA extended policy adds coverage for specified matters an inspection or correct survey would disclose, including certain unrecorded easements, encroachments, and rights of parties in possession. Always read the policy and endorsements because labels summarize coverage but do not replace the contract.

See also

RecordingPlacing an instrument in the county public record, which can provide constructive notice and affect priority under the recording laws.Preliminary reportAn offer to issue a title policy on stated terms. It is expressly not an abstract of title.

Test the distinction

A relevant question from Transfer of Property, selected because its facts or explanation use this concept.

Transfer of Property ยท 8%Title Insurance

What is the primary difference between a CLTA standard policy and an ALTA extended policy?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Transfer of PropertyAll seven official DRE transfer topics in one California-specific guide, from title insurance and deeds to taxes, probate, recording, and vesting.8%Practice Transfer of Property24 questions on this area, every option explained.Practice

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