What is the difference between ALTA and CLTA Title Insurance?

1. CLTA STANDARD COVERAGE POLICY • (CALIFORNIA LAND TITLE ASSOCIATION)
The CLTA Standard Coverage Policy is designed to insure the owner of real property and/or the lender under a deed of trust against loss by reason of those matters covered under the policy of insurance.

What Is Covered?
Some of the coverages provided under the CLTA Standard Coverage Policy are the following:

• Title to the real property owned by a person other than the insured
  
• Defects, liens, and encumbrances upon title which are recorded
  
• Lack of a right of access to and from the real property
  
• Marketable interest in the real property
  
• No forgeries or failed conveyances in the chain of title
  

What Is Not Covered?
Some of the matters not covered by the CLTA Standard Coverage Policy are the following:

• Matters which a correct survey would show
  
• Unrecorded matters
  
• Matters which a physical inspection of the real property would disclose
  
• Rights of parties in possession
  
• Unpatented water and mineral rights
  
• Matters known, created or assumed by the insured
  
  

Owners Insurance
The CLTA Standard Coverage Policy insures the owner of any type of real property (commercial, industrial, vacant land, or residential) against those matters covered under the policy of insurance.

Lenders Insurance
The CLTA Standard Coverage Policy insures the lender under a deed of trust upon any type of real property (commercial, industrial, vacant land, or residential) against those matters covered under the policy of insurance including both the validity and priority of the lender's deed of trust upon the real property.

2. ALTA RESIDENTIAL TITLE INSURANCE POLICY • (AMERICAN LAND TITLE ASSOCIATION)
The ALTA Residential Title Insurance Policy is designed to insure the owner of residential property including condominiums (one to four family residences) against loss by reason of those matters covered under the policy of insurance.

What Is Covered?
The ALTA Residential Title Insurance Policy provides all the coverages afforded under the CLTA Standard Coverage Policy plus the following:

• Mechanic's lien protection arising out of work done on the real property for which the insured did not agree to pay
  
• Rights under unrecorded leases
  
• Unrecorded easements
  
• The encroachment of insured's improvements upon adjoining real property
  
  

Lenders Insurance
The ALTA Residential Title Insurance Policy does not provide coverage to a lender. However, a lender under a seller carry-back deed of trust may obtain coverage by means of an endorsement to the policy.

3. ALTA LOAN POLICY • (AMERICAN LAND TITLE ASSOCIATION)
The ALTA Loan Policy is designed to primarily insure an institutional lender under a deed of trust upon any type of real property (commercial, industrial, vacant land, or residential) against those matters covered under the policy of insurance, including both the validity and priority of the lender's deed of trust upon the real property.

What Is Covered?
The ALTA Loan Policy provides all of the coverages afforded under the CLTA Standard Coverage Policy plus the following:

• Matters which a physical inspection of the real property would disclose
  
• Easements not disclosed by the public records
  
• Encroachments, discrepancies or conflicts in boundary lines not shown by the public records
  
• Rights of parties in possession
  
• Mechanic’s liens

4. ALTA RESIDENTIAL TITLE INSURANCE POLICY • (AMERICAN LAND TITLE ASSOCIATION)
The ALTA Owner’s Policy is designed to insure the owner of real property against loss by reason of those matters covered under the policy of insurance. Do not confuse this policy with the ALTA Residential Title Insurance Policy. The ALTA Owner’s Policy is the broadest form of insurance provided an owner of any type of real property (commercial, industrial, vacant land, or residential).

What Is Covered?
The ALTA Residential Title Insurance Policy provides all the coverages afforded under the CLTA Standard Coverage Policy plus the following:

• Matters which a survey would disclose
  
• Easements not disclosed by the public records
  
• Encroachments, discrepancies or conflicts in boundary lines not shown by the public records
  
• Rights of parties in possession
  

What Is Not Covered?
Like all policies of title insurance, the ALTA Owner’s Policy does not provide coverage against matters known, created, or assumed by the insured.

Additional Requirements
Since the ALTA Owner’s Policy provides such broad coverage, additional requirements for the issuance of the policy may include:

• A correct survey
  
• A field inspection
  
• A check with all utilities to make sure that they have no unrecorded easements
  
• Copies of all leases and/or tenant lists
  
  

Since these requirements take time to complete, plan accordingly. Furthermore, the policy may contain further exceptions. Therefore, do not necessarily expect a clean report.

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