American Land Title Association (ALTA) Definition
The American Land Title Association is a trade-inclined institution which stands as patron for the title insurance industry. This association also focuses on the abstract of title of a property. Established in 1907, this association seeks to protect the right of consumers as well as improve the performance of the industry. Members of ALTA also follow set down rules and ethical business practices as well as legal manners that consumers are comfortable with.
A Little More on What is the American Land Title Association (ALTA)
The American Land Title Association is in charge of creating the title insurance forms and agreement templates that are used by insurers across the country. It is important to note that these forms are used by voluntarily, as no firm or insurer is compelled to apply these forms in their varying agreements. ALTA members make a review of different land titles and properties to protect lenders and home buyers. This association also offers resources for training in the industry through one of their intermediaries; the Land Title Institute (LTI). These resources are aimed at creating the best title and insurance practices.
Most insurers in the nation are members of ALTA, and they perform different land and property-related businesses across the country. Most entities that create abstracts of titles are also members of this association. Members come from different fields in the real estate sector, with some being attorneys, builders, buyers and property brokers amongst others. Surveyors and lenders also make up a part of this association. Just like every lawful society, ALTA has 11 Governors (not political governors in this case) that create management policies as well as discuss different strategies to ensure that the association is financially active. This association also has 33 committee members under the 11-board governors.
What ALTA Does
ALTA, being a big and indispensable association, keeps contact with Congress members, the Federal National Mortgage Association, as well as the Federal Home Loan Mortgage Corporation. In fact, almost all agencies that have something to do with real estate has a relationship with this association. ALTA aims to increase the state of land title records, as well as present relevant education in this sector. At times, this association works alongside other organizations on pending state legislative positions related to land.
ALTA and Title Insurance
This association performs a title search sequel to the completion of a real estate transaction activity. It updates its search anytime a loan is refinanced or each time a property exchange hands. The purpose of this search is to check if there is any lien (in the case of mortgages) or other property-related burdens on the estate. This association provides two types of title insurance: the owner’s title insurance, and the lender’s title insurance. The former protects the buyer, and the latter safeguards the lender.
Reference for “American Land Title Association (ALTA)”
Academics research on “American Land Title Association (ALTA)”
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A Survey of Eastern Indian Land Claims: 1970-1979, Vollmann, T. (1979). A Survey of Eastern Indian Land Claims: 1970-1979. Me. L. Rev., 31, 5.
The 2006 ALTA Title Insurance Policies: What New Protection Do They Give?, Palomar, J. (2007). The 2006 ALTA Title Insurance Policies: What New Protection Do They Give?. Real Property, Probate and Trust Journal, 1-39.
Title Insurance and the Title Insurance Industry, Quiner, S. J. (1972). Title Insurance and the Title Insurance Industry. Drake L. Rev., 22, 711.
Limited Liability Companies, Corporations, General Partnerships, Limited Partnerships, Joint Ventures, Trusts-Who Does the Title Insurance Cover, Palomar, J. D. (1996). Limited Liability Companies, Corporations, General Partnerships, Limited Partnerships, Joint Ventures, Trusts-Who Does the Title Insurance Cover. Real Prop. Prob. & Tr. J., 31, 605.