When a title company issues an ALTA policy, it will extend the risk beyond that which is covered by a standard policy, to include all of the following, except:

A. the rights of parties in possession
B. unrecorded easements
C. the effect of zoning regulations
D. unrecorded mechanic's liens

Answer: C. the effect of zoning regulations
Explanation: Title insurance policies -- whether standard coverage, extended (ALTA) coverage, or some other type -- do not insure against losses caused by governmental actions, such as zoning changes.

Business

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