Under the ALTA 2006 form policy, which of the following is NOT a Covered Risk?

The correct answer identifies a scenario that is not considered a Covered Risk under the ALTA 2006 form policy. Covered Risks generally relate to unforeseen issues that may arise after a title insurance policy is issued.

In the context of title insurance, the preparation of deeds and mortgages is typically a standard aspect of real estate transactions, rather than a risk associated with the title itself. This means that the work done to prepare documents for the closing of a sale is expected and does not fall under the protective scope of title insurance coverage. Rather, title insurance is designed to protect against defects in title that could affect ownership rights, such as liens, encroachments, or governmental actions.

The other options describe specific risks that could directly affect the title and for which the title insurance policy would provide protection. For example, unpaid real estate taxes (the first option) represent a financial claim against the property that could jeopardize ownership. Issues arising from surveys (the second option) point to potential discrepancies or encroachments that are not immediately evident but may impact the owner's rights. The last option involves governmental takings where a property’s ownership might be challenged, which directly threatens the integrity of the title.