Standard Coverage title policies (known as CLTA policies in California) contain “Regional Exceptions” (meaning coverage is NOT provided) for several possible defects in title that are mostly things that cannot be discovered in a title search. These defects are typically called off-record matters.

These are the Regional Exceptions:

1.

Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.

2.

Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.

3.

Easements, liens or encumbrances, or claims thereof, not shown by public records.

4.

Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5.

a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.

6.

Any lien or right to a lien for services, labor or material not shown by the public records.

Standard Coverage is designed for those that have inspected the property that they are purchasing or financing and are satisfied that they do not need the additional protection afforded by an Extended Coverage Policy.

The exceptions listed above do NOT appear in Extended Coverage title policies (Most ALTA policies). However a survey of the property, inspection and/or inquiry of parties in possession is required in conjunction with issuance. Also, there is typically an additional cost associated with Extended Coverage, as well.

NOTE: This is intended only as a brief summary and is not to be relied on for explanation of policy coverage. Policy coverages are subject to the terms, exclusions, exceptions and deductibles shown in the policies. You should consult your attorney for advice on which policy you should purchase.