An ALTA Lender's policy is a policy for lender's permission and generally:

An ALTA Lender's policy provides a comprehensive level of protection for lenders in real estate transactions and generally covers both constructive and actual notice.

Constructive notice refers to information that a person could discover through the exercise of reasonable diligence. This means that anyone involved in a transaction is expected to be aware of information that is available in public records, even if they haven't directly seen or heard about it. An ALTA Lender's policy protects lenders against risks related to matters that should have been known.

Actual notice, on the other hand, is the direct awareness of a fact, often through communication or personal observation. This coverage ensures that if a lender is aware of any prior claims or encumbrances against the property, they are protected against those risks.

By providing coverage for both types of notice, an ALTA Lender's policy ensures that lenders are protected against a wider range of potential issues that could arise, thereby reducing their risk in lending practices. This comprehensive approach is instrumental for lenders when assessing the security of the investment made in real estate transactions.