California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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The ALTA extended coverage policy does NOT protect against what?

Fraud
Forgery
Encroachments
Zoning changes

The correct answer is: Zoning changes

The ALTA extended coverage policy provides an additional layer of protection on top of a standard title insurance policy. It covers a wide range of potential risks and issues related to the property, such as unrecorded liens, encroachments, and lack of legal access. However, it does not protect against zoning changes. This means that if a zoning change affects the property and causes a decrease in its value, the policy will not cover it. The other options listed, such as fraud, forgery, and encroachments, are all risks that are covered by the ALTA extended coverage policy.