California Real Estate Practice Exam 2024 - Free Real Estate Practice Questions and Study Guide.

The buyer can collect nothing because title insurance typically covers defects in the title and issues that may affect ownership rights, such as liens or encumbrances. It does not address zoning issues or violations of local ordinances, such as setback requirements. In this case, the new homeowner is dealing with a zoning compliance issue rather than a title defect. Zoning regulations are enforced by local governments, and homeowners are generally expected to be aware of these regulations upon purchasing a property. Since the title insurance policy does not cover zoning compliance or issues related to property lines, the buyer has no recourse through the title insurance for the encroachment of the roof eave into the setback area. Thus, the correct answer reflects that the buyer cannot collect any compensation for the situation outlined.