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Company Loan Type APR Est. Pmt.

ALTA policy

Posted on: 16th Nov, 2006 02:19 pm
what does ALTA lenders title insurance policy cover, thanks,C.Serge-California
Hi Serge,

The American Land Title Association (ALTA) Policy provides extended coverage for the lenders. The lenders are protected from additional off-record matters such as encroachments, unrecorded easements, possessory interests, and discrepancies in boundaries, the matters which may generally be determined by a land inspection or a proper survey.

It also protects the lender against land title problems such as forged deeds, unrecorded mechanic's liens, impersonation of owner, easements, water rights, mining claims, life estates, contested wills and other assessments.

It insures the lender that they will have a lien on the property which will take priority over various claims and interests on the subject property.

Do let us know if you have any other questions.

Posted on: 16th Nov, 2006 02:31 pm
Let me add that the ALTA policy is also called an extended policy and is generally purchased for the benefit of the lender. The buyer pays for this lender protection.

It insures that the lender has a valid and enforceable lien, subject to only the exclusion from coverage noted in the exception schedule of the title policy.
Posted on: 16th Nov, 2006 02:50 pm
Thanks to all for providing the details, I was really confused about this.
Posted on: 16th Nov, 2006 03:10 pm
Hi Serge,

ALTA lender's title insurance policy is meant for institutional lenders (banks, savings and loan associations) only. It helps to protect the lender's interest against loss or damage up to the total amount of the loan for the entire loan term.

The policy is issued only after a title company conducts a title search on the property and declares that the title to the property is clear. The policy amount reduces each year and finally disappears as the loan is repaid. As issues related to title are not regulated by the federal government, the ALTA policy follows local and state property tax laws.


Posted on: 16th Nov, 2006 09:29 pm
What is different between Alta policy and Alta endorsement?
Posted on: 23rd Sep, 2010 11:49 pm
As far as I know, the ALTA endorsements are mainly issued with policies insuring interests in commercial real estate deals. Many of them will also be issued in residential transactions.
Posted on: 24th Sep, 2010 11:16 pm
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