Realtor Ranjana Shreedhar
Call : 408.861.8026
10105, S De Anza Blvd. Cupertino, CA 95014
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Sunday, February 10, 2013

Real Estate Tip: Red Flags In Preliminary Title Report

Look Out For These Warning Signs In The Preliminary Title Report 

Avoid Problems Prior To Or At Close of Escrow

Avoid Real Estate Title Deed Problems Before Close Of Escrow
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Problems with or related to the title deed/home ownership status can mar a smooth sale transaction unless these are identified early and addressed right at the outset. A variety of issues can be possible as outlined below so your best bet is to have these rectified early in sale / purchase to avoid problems, delays, frustration, and desperate situations for you, either as a Home Seller or a Home Buyer. As your Real Estate Agent I will help you with any of the following issues but read on to educate yourself about these.


If the name on the title deed is different from the seller signatures in the purchase contract, you need to find out why. Determine if the seller actually has the right to sell or sign on behalf of the name on the title deed. 


Look to see if  payments are current.  Be sure that all special assessments have been disclosed to the buyer. If payments are not made, the county holds lien on the property for the taxes owed. Ensure this is covered prior to closing. 


Deeds of Trust that are paid off but are not reconveyed require a reconveyance from the trustee or a court order to remove it from the record.  Find out through your realtor if the seller understands that such loans or financial commitments affect his property.


Judgments and Liens may be eliminated with an identity affidavit or an SI, commonly known as STATEMENT OF INFORMATION / CONFIDENTIAL INFORMATION STATEMENT,  if they do not affect the party in question.  If they do affect the party but have been paid and not satisfied, a release or satisfaction must be obtained and recorded or filed to eliminate these matters.


A civil action affecting real property will generally have to be dismissed or withdrawn before title to the land can be insured.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 have specific requirements.  Please check with your Title Sales Representative or Title Officer for details. 


Roads, driveways, party walls, and access easements may be affected by joint maintenance agreements which may require future payments for general maintenance purposes.  

The title report will show such agreements if one is of record.  Be sure to request a full copy of the maintenance agreement read it.


The legal description should always be compared to the map attached to the preliminary title report.  Be sure that all the property being conveyed has been included in the preliminary title report.  


If the seller/owner is behind in his/her payments and has received a notice of default, the sale date may be set three months after the date of notice of default as that is the timeframe given to the seller to "cure" the default.


The sale date has been set. This recorded document contains the date, time and place of this sale.  If you are the purchaser in this transaction you should verify for yourself that the COE (Close of Escrow) date is scheduled prior to the  date of that sale, or that the sale date has been postponed.

As your Realtor, one of the many services I bring to you is the ability to analyze the Preliminary Title Report in detail in consultation with Escrow professionals. My team of professional service providers includes very experienced Escrow officers who complement my real estate expertise to help you avoid such situations and more. 

Please give me a call at (408) 861-8026 for all your real estate needs, whether you are in the market to Buy or Sell your home. 

Republished with permission from Candice Francisco, Cornerstone Title Company


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