Verifying Vested Owner(s) Name(s): Verify that the names on the report match the names on the purchase contract or deposit receipt. If the name of another owner appears on the contracts (such as previous spouse or deceased relative), a corrective document may be required.
Check for these items:Are the names the same as shown on purchase agreement/deposit receipt? Have all parties executed and approved the purchase agreement?
Type of Estate or Interest:Fee title or other (Leasehold or Equitable).
Printed Exceptions:Carefully review all exceptions.
Easements:Understand the type and location of all easements. Example: An easement on a property’s side yard could prevent building expansion or remodeling in the future.
CC&Rs - Covenants, Conditions and Restrictions:Declaration by owners of any subdivision prior to sale describing property restrictions and agreements affecting said property and future owners.
Deeds of Trust:All existing loans against the property or the existence of any paid-off loans which have not yet been reconveyed of record.
Notice of Default:Alerts all parties of an existing foreclosure proceeding.
State or Federal Tax Liens, Judgments, Bankruptcyor other court proceedings affecting the seller and/or the property.
Legal Description:A method of geographically identifying a parcel of land, by lot and block or metes and bounds. Also discloses assessors parcel number.
5 Year Short Term Rate (STR):Notation at the end of preliminary report. STR indicates property is subject to short term rate which allows for a reduction in the title insurance premium. Most Title Companies have a 5 year short term rate, which means if there has been any insured transaction within the last 5 years the discount will apply.
Thoroughly review your Preliminary Title Report:If there is anything on the report that you do not understand, you can contact Title Company escrow or title officer. The responsibility for locating and resolve issues early is the responsibility of the escrow team. Some issues that will help avoid delays and problems are: Current marital status; Previous marital status; Names of all persons on title; All court-ordered payments or garnishments from your salary.
Title Insurance provides vital information to all parties and protects a purchaser against title defects and future losses.
