Page 5 - Southern California Top Requested Flyers
P. 5
Tips for Reading
a Preliminary Report
The preliminary report should ALWAYS be reviewed in its entirety. Are there any other liens and encumbrances?
A quick scan could cause you to miss important information that IRS, State Franchise Tax Board, mechanics liens, family support
could delay the close of escrow. In most cases, when liens or judgments, etc. all take time to clear through escrow and your
clouds on title are discovered early in the process the Title Officer Escrow Officer will likely need the cooperation of the homeowner.
can work with the parties to the transaction to resolve these If not addressed immediately these items could delay the close of
matters and prevent escrow delays. The key is for all parties in escrow.
the transaction to review ALL exceptions and informational notes
and communicate with their Escrow Officer and Title Officer. The INFORMATIONAL NOTES
role of the Escrow Officer is to obtain and follow instructions from
all parties involved in the transaction. The property type is listed to aid ORT in issuing the
appropriate policy of title insurance and endorsements
The following is a list of highlights that you should be A lender will typically want to verify the property type (SFR, 1-4
Family, PUD etc).
reviewing on every Preliminary Report
Is there a requirement for a Statement of Information?
Do the names on the property match the names on the A Statement of Information is required when the title department
contract? cannot clear the seller of any liens based on their name. It is
Have you reviewed the legal description to see the description important that this information be returned to the Escrow Officer
of the land covered in the Preliminary Report? immediately to avoid any escrow delays.
EXCEPTIONS PAGE ASSESSOR’S PARCEL MAP (Provided for informational
(ORT Prelims are typically HYPERLINKED for your convenience) use only. This is neither a plat nor a survey, it is furnished merely as
a convenience to aid you in locating the land indicated hereon with
The Preliminary Report will show the payment status of property reference to streets and other land.)
taxes and supplemental taxes. Does the seller confirm that this is
correct or have additional payments been recently made? Does this match your understanding of the property under
contract? Dotted lines could indicate easements although not
Review the Preliminary Report for any easements. all easements are shown on the Assessor’s Parcel Map.
Copies of recorded easements are HYPERLINKED when available
or recorded copies can be ordered through your Escrow Officer. A Preliminary Report is not a policy of title insurance. The
Are there recorded CC&R’s on the property? Have your clients issuing company assumes no liability for any reliance thereon.
reviewed the CC&R’s.? It is important to note that a Preliminary Report is not a written
representation as to the condition of title and may not list all liens,
Are there any Deeds of Trust listed on the Preliminary Report? defects, and encumbrances affecting title to the land.
If a Deed of Trust appears this could mean that the Deed of Trust
has not been reconveyed. If the loan secured by this Deed of Trust For more information ask us about our informational classes
has been paid in full contact your Escrow Officer immediately. “Exploring the Preliminary Report” and “Escrow Red Flags”.
Are we missing any Deeds of Trust?
If the seller is aware of an active loan secured by a Deed of Trust
that is not on the Preliminary Report contact your Escrow Officer
immediately.
10/2021 | © 2021 Old Republic Title | OR2518-DI |
Old Republic Title is providing this information as a free
client service and makes no warranties or representations
as to its accuracy.
Old Republic Title strongly recommends consumers
confer with their title insurer as underwriting requirements
vary among companies and further, obtain guidance and
advice from qualified professionals, including attorneys
specializing in Real Property, Trusts and/or Title Insurance
to get more detailed, and current, information as to any
particular situation affecting them.
