American Land Title Association (ALTA)
Definition of "American Land Title Association (ALTA)"
The label American Land Title Association, also known as ALTA, is a trade association that helps in managing the title insurance industry. Another focus of ALTA is the abstract of title of properties, tying the property’s title to a specific piece of real estate. The main goal of the association is to protect customers and aims to correct industry oversights.
How does ALTA work?
Some of the ALTA members are abstracters, title agents, and title insurance companies that are active within the association. Almost all of them who work on title records have an ALTA membership. For those wondering how to get title insurance, know that the member’s end product is the title insurance policy that can either be for the owner, protecting them or for the lender, protecting them. ALTA itself merely provides industry-tailored forms that can be used by any real estate professional.
The role of ALTA in real estate is required before the closing of any real estate transaction. The abstract of title needs to be complete before closing, and a new title search and a title policy are required before the sale of any property or application for a refinanced loan. These explorations in the title’s history are necessary to discover any liens or encumbrances on any particular property.
What does ALTA do?
The American Land Title Association’s work is highly complex, and it includes over 6,000 members from one-county operations to national title insurers. Their goal is to develop the knowledge and skills of those working in real estate transactions, improve the marketplace, and help to standardize products used by the industry. They are in regular contact with Congress members, as well as the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation, and the National Association of Insurance Commissioners (NAIC).
With their focus on developing a better understanding of the industry and improving the forms used freely by insurers in the US, the goal is to establish better practices within the industry.
Popular Real Estate Terms
Failure or refusal to perform a specified action. The failure to fulfill contractually agreed upon terms or actions. Nonperformance creates a liability which can enable a judicial damage ...
Legal instrument permitting one to grant others general or specific powers for administering their finances. ...
The meaning of a development impact fee or impact fee defines a one-time cost the local government imposes on a brand new or planned development project (regularly on a property developer.) ...
Warm air heating system where ducts are located in the concrete slab of a building constructed without a basement. As the name implies, a perimeter heating system is located around the ...
Everyone is aware of the perplexing complexities of a real estate transaction. Enter Opendoor, a company that aims to simplify this experience. If you're a house hunter, seller, real estate ...
House that can be bought at a low price because it is in poor condition. A buyer who is handy may find it attractive because he can personally make the needed repairs without hiring others. ...
(1) Methods that involve discounting the future cash flows generated by an income property. These techniques are used primarily for valuation. (2) Methods of selecting and ranking ...
A method widely used for evaluating real estate projects. Under the net present value method, the present value (PV) of all cash inflows from the project is compared against the initial ...
Metal or wood channel attached immediately below or along the eaves of a building for the purpose of channeling rainwater away from the structure. The gutter prevents rain runoff from ...
Have a question or comment?
We're here to help.