§14.21 - ALTA Owner's Policy

• Jurisdiction: Washington

§14.21 ALTA OWNER'S POLICY

The 2006 ALTA Owner's Policy, adopted on June 17, 2006, insures (paraphrasing the policy language) against loss or damage resulting from:

(1) Title as described in Schedule A being vested (owned) other than as shown.

(2) Any defects in, or liens or encumbrances on, that title. Unlike earlier policy forms, specific defects are listed, including (a) forgery, fraud, undue influence, duress, in competency, incapacity, or impersonation (these being so-called "hidden risks" because they cannot be readily ascertained from the public records), (b) lack of authority, (c) improper execution and acknowledgment, (d) improper creation of electronic documentation, (e) invalid power of attorney, (f) improper recording, including electronic recording, and (g) defective judicial or administrative proceeding.

(3) Unmarketable title.

(4) Lack of right of access.

(5)Recorded notices of violations of "governmental" laws or ordinances that are otherwise excluded from coverage, such as building and zoning matters relating to the use and occupancy of the land, subdivision, and environmental protection, as well as certain recorded notices of enforcement actions relating thereto.

(6) Eminent domain takings, as long as they are in the public records, and government takings that are binding on a purchaser for value without knowledge.

(7)Vesting of title being affected by fraudulent or preferential transfers under creditors' rights laws such as federal bankruptcy or state insolvency laws.

(8) Certain matters arising between the date of the policy and the...