California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

Practice this question and more.

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.