Leave a Message

Thank you for your message. We will be in touch with you shortly.

7 Red Flags On A Preliminary Title Report

Schoelerman Group March 1, 2023

Buyer

7 Red Flags On A Preliminary Title Report
 

Here are a few things to look for on a Preliminary Report that might cause problems prior to closing:

INCOMPLETE OR INACCURATE LEGAL DESCRIPTION

The legal description on the title commitment should always be compared to the legal description in the purchase and sale agreement. This ensures all property being conveyed has been included and thereby covered in the preliminary title commitment and forthcoming title policy.
 

OUTSTANDING DEED(S) OF TRUST

Deeds of Trust which were paid off, but not reconveyed, will require a reconveyance from the trustee or a court-ordered satisfaction to remove it from the record. In certain situations, with proof of payment and indemnity, the title company may insure around these encumbrances.
 

TAXES AND ASSESSMENTS

Look for an exemption or classifications designated that would change the tax amount as a result of the sale or loan, such as a Senior Exemption or Forest Land designation. The tax rate may change for the buyer upon transfer of ownership, so be sure to discuss this with the buyer.
 

ANY PENDING CIVIL OR CRIMINAL ACTIONS

A civil action affecting real property will generally have to be dismissed or settled before title to the land can be insured. A pending divorce may not need to be finalized for a sale or loan to close, however, there may be special requirements. A probate may require special handling. Please check with your Chicago Title Escrow Officer for details.
 

JUDGEMENT AND LIENS

Judgements and Liens may be eliminated with an identity affidavit if they do not affect the proposed insured. If they do affect the proposed insured, but have been paid and not satisfied, a release may be recorded or filed to remove these matters from the record.
 

IMPROPER VESTING

If the person signing the listing agreement is not identified as the vested owner on the title report, look for a real estate contract as an exception. If none, check the legal description to confirm it is the same description as in the purchase and sale agreement.
 

JOINT USE

Driveways, party walls and access easements may require a joint maintenance agreement by the lender. The title commitment will show the agreement if one is recorded.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Lifestyle

This Surprising New Porch Service Will Instantly Boost Your Fall Curb Appeal

September 17, 2025

If fall gives you the urge to deck your halls with piles of pumpkins, but your to-do list leaves little time for decorating (let alone creating extravagant autumnal di… Read more

Seller

Patience Won’t Sell Your House. Pricing Will.

September 16, 2025

Let’s be real.

Buyer

What a Fed Rate Cut Could Mean for Mortgage Rates

September 16, 2025

The Federal Reserve (the Fed) meets this week, and expectations are high that they’ll cut the Federal Funds Rate.

Buyer

Report: National Median Home Price at $389,000, Up 2.4%

September 13, 2025

The national median home price inched up by 2.4% year-over-year in August to $389,000, according to a data report from the Costar Group (NASDAQ: CSGP) brand Homes.com.

Buyer

Mortgage Rates Just Saw Their Biggest Drop in a Year

September 12, 2025

You’ve been waiting for what feels like forever for mortgage rates to finally budge.

Buyer

For Sale: 671 Live Oak Ave, Menlo Park, CA 94025

September 12, 2025

View All

We are Your GPS to Success Let’s Get Started

We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today

Schedule Appointment

Follow Us On Instagram
Get in Touch
Contact Details

Jackie Schoelerman

(650) 855-9700

[email protected]



Coldwell Banker

581 University Ave.

Palo Alto, CA 94301

 

Jackie Schoelerman | CA DRE# 01092400
Richard Schoelerman | CA DRE# 01413607