As busy Los Angeles Real Estate Attorneys, we frequently deal with issues arising out of title insurance and title reports. This issues range from helping buyers and sellers eliminate exceptions listed in title reports – items the title company shows are effecting title and thus will not insure against – to litigating coverage with title companies. Remember, the purpose of title insurance is to provide protection to a buyer or lender about the lien priority on title such that if someone else claims to to have an interest in the property there is insurance in place to protect against such a claim.
There are, however, common exclusions from coverage in title policies. The exclusions depend on the type of title policy in place. A California Land Title Association (“CLTA”) policy protects homeowners from financial losses associated with title fraud and forgery. This type of policy protects the insured (homeowner or lender) from the property being claimed by anyone other than the insured title owner. However, it typically only protects against recorded claims (not unrecorded ones).
The other type of title policy provide broader protection. The American Land Title Association (“ALTA”) policy typically protects against everything covered in a CLTA policy as well as many additional risks, like easements and encroachments, that may not be shown by public records.
The key to understanding any title policy is to do a detailed review of the policy terms and the exclusions that are expressly listed in the title policy based on the individual property.
At Schorr Law, our Los Angeles based title attorneys have extensive experience litigating and resolving title policy issues and title issues in general. For a free consultation on your title matter, please contact us today at 310-954-1877, firstname.lastname@example.org.