Check Your Understanding-Answers
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What is escrow?
The process in which a disinterested third party holds all money and documents relating to a transaction until all of the terms and conditions of the escrow instructions have been satisfied.
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Who needs title insurance and why?
Both the buyer and the lender need title insurance. Insurance for the buyer ensures a clear title and protects his or her investment. Insurance for the lender protects the lender's interest in the property.
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What is the difference between CLTA and ALTA policies? How does ALTA-R differ from ALTA?
CLTA is the basic standard policy and ALTA provides extended coverage.
ALTA includes a survey and ALTA-R does not.
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What items are not covered by any title insurance policy?
Defects known to the insured but not disclosed to the title insurer.
Government zoning regulations.
