Preliminary Title Reports in California

Prepared by a title company early in the escrow process, the title report lays the groundwork for issuing title insurance and ensures that all parties understand any risks or conditions attached to the property. Whether you’re buying or selling, reviewing this report carefully and addressing any issues it raises is crucial for a smooth and secure transaction.

What Exactly is a Preliminary Title Report?

A Preliminary Title Report is a vital document in any real estate transaction, especially in California, where property laws can be complex. It provides a detailed snapshot of the legal status of a property’s title before the sale or refinance is finalized. This report helps buyers, sellers, lenders, and attorneys identify any liens, easements, ownership issues, or other claims that might affect the property’s clear ownership.

What Is a Preliminary Title Report?

A Preliminary Title Report is a document from a title company that shows the current legal status of a property’s title. It lists the owner, any liens, easements, or restrictions, and outlines issues that must be resolved before a sale or refinance can close. Though not an insurance policy itself, the report helps identify risks and sets the terms for issuing title insurance. It ensures all parties are aware of any title problems before the transaction is finalized.

Why It’s Crucial for Real Estate Transactions in California

A Preliminary Title Report is crucial for real estate transactions in California because it reveals any legal or financial issues tied to the property before closing. Given California’s complex property laws and frequent use of easements, trusts, and liens, this report helps buyers avoid costly surprises. It also protects lenders and ensures the buyer receives clear title. Without it, unresolved claims or ownership disputes could delay closing or cause legal problems after the purchase.

What Does a Preliminary Title Report Include?

A Preliminary Title Report includes detailed information that outlines the current legal status of a property’s title. To make the report easier to review, here’s a quick breakdown of the most important sections you’ll typically see in a California preliminary title report—and why each one matters before closing.

What a California Preliminary Title Report Includes (Key Sections)
Report Section	What You’ll See	Why It Matters
Property Description	Legal description, boundaries, APN/parcel number, sometimes address	Confirms the exact property being transferred (prevents “wrong parcel” issues)
Owner Information / Chain of Title	Current recorded owner(s) and ownership history in public records	Verifies who can legally sell or refinance the property
Recorded Liens & Encumbrances	Mortgages, tax liens, judgments, mechanic’s liens, other claims	Identifies debts that typically must be cleared or addressed before closing
Easements & Restrictions	Utility/access easements, deed restrictions, zoning limitations	Can limit use, impact value, and affect future improvements
CC&Rs (HOA Rules)	Covenants, Conditions & Restrictions tied to an HOA or community	May regulate maintenance, remodels, rentals, and property use
Exceptions to Coverage	Items the title insurance policy will not cover	Clarifies remaining risks so buyers/lenders can evaluate exposure
Legal Actions or Notices	Pending lawsuits, probate matters, tax delinquency notices	These can delay closing or create ownership disputes after purchase
Tax Status	Current property taxes, unpaid amounts, special assessments	Prevents unexpected tax bills and helps confirm what must be paid at closing

This snapshot enables buyers, sellers, lenders, and attorneys to assess title risks, resolve issues early, and proceed confidently toward closing.

When and how is the Preliminary Report produced?

The Preliminary Title Report is typically produced shortly after a real estate transaction enters escrow, usually within a few days of the escrow officer opening the file. It’s requested by the escrow or real estate agent and prepared by a title company.

To produce it, the title company conducts a title search using public records to gather information about the property’s legal status, ownership history, liens and encumbrances. The resulting report gives all parties a clear picture of title conditions before moving forward.

What is the cost of a Preliminary Title Report?

The cost of a Preliminary Title Report can vary and is typically provided by quote. Please contact us by email or phone, and we’ll be happy to give you an estimate.

How Can a Real Estate Attorney Assist with a Preliminary Title Report?

A real estate attorney can assist with a Preliminary Title Report by reviewing the document for legal issues that may affect the transaction, such as unclear easements, unresolved liens, or ownership disputes. They can explain complex language, identify red flags, and advise whether certain title conditions need to be resolved before closing.

If problems are found, the attorney can negotiate corrections, help clear title defects, or work with the title company and escrow to ensure proper documentation. Their guidance helps protect the buyer’s interests and ensures a smoother, legally sound closing.

Why Is a Preliminary Title Report Important for Sellers?

A Preliminary Title Report is important for sellers because it helps them identify and resolve any title issues—such as liens, unpaid taxes, or ownership discrepancies—before they become obstacles during escrow. Addressing these issues early can prevent delays or cancellations of the sale. It also builds trust with buyers by showing transparency and demonstrating that the property has clear, marketable title. Providing a clean report can lead to a smoother transaction and quicker closing.

The Role of the Preliminary Title Report for Buyers

For buyers, the Preliminary Title Report plays a critical role by revealing any legal or financial claims against the property before purchase. It shows whether the seller has clear ownership and discloses issues like liens, easements, or restrictions that could affect the buyer’s use or value of the property.

By reviewing this report early, buyers can make informed decisions, request corrections if needed, and ensure they’re protected before closing. It also lays the groundwork for obtaining title insurance, which offers long-term protection.

Who Prepares and Provides the Preliminary Title Report?

The Preliminary Title Report is prepared and provided by a title company or title insurance company. After a real estate transaction enters escrow, the title company conducts a thorough search of public records to gather information about the property’s ownership, liens, easements, and any other claims. Once the search is complete, the company issues the report to the buyer, seller, lender, and their agents. This report serves as the basis for issuing the final title insurance policy if the transaction moves forward.

How to Obtain a Preliminary Title Report in California

To obtain a Preliminary Title Report in California, start by opening an escrow account through a real estate agent, lender, or attorney involved in the transaction. The escrow officer or agent will then order the report from a title company on your behalf.

The title company conducts a search of public records related to the property and prepares the report, usually within a few days. You’ll receive the report through your escrow officer, real estate agent, or directly from the title company. If you’re a buyer or seller, it’s important to review it carefully and ask questions about anything unclear.

Quick Facts: Preliminary Title Report in California

If you want the essentials at a glance, use the table below. It summarizes when the preliminary title report is produced, who prepares it, what it typically costs, and how to obtain one in California—including how to request it from ProTitleUSA.

Topic	Answer (Based on This Page)	Practical Notes
When is it produced?	Shortly after the transaction enters escrow—usually within a few days after the escrow officer opens the file.	Reviewing it early helps prevent delays before closing.
How is it produced?	The title company runs a title search using public records to identify ownership, liens, easements, and other encumbrances.	The report is the foundation for issuing the final title insurance policy.
Who prepares it?	A title company or title insurance company.	Typically delivered to the buyer, seller, lender, and their agents once completed.
Who orders it?	Usually requested by the escrow officer, escrow company, or a real estate agent after escrow is opened.	Buyers and sellers generally receive it through escrow/agent or directly from the title company.
What does it cost?	Varies; typically provided by quote. Contact by email or phone to get an estimate.	Pricing can depend on property details and the scope of the search.
How do you obtain it in California?	Open escrow via an agent, lender, or attorney; the escrow officer/agent orders it from a title company.	Usually ready within a few days; review carefully and ask questions if anything is unclear.
Can I order from ProTitleUSA?	Yes—request through customer service by phone or email.	The online ordering system is currently for standard title searches (not Preliminary Title Reports).

Can I order a Preliminary Title Report from ProTitleUSA?

Yes! You can order a Preliminary Title Report from us; however, you must submit this request with our customer service department, either by phone or email. Our online ordering system is currently designed just for standard title searches and is not equipped for ordering Preliminary Title Reports.

Frequently Asked Questions
From Customers in California

Is a Preliminary Title Report the same as title insurance in California?

No. A California preliminary title report is a pre-closing title document that summarizes the current condition of title and lists items that must be addressed before escrow can close. Title insurance is the policy issued after closing that helps protect against certain covered title defects. The preliminary report is used to identify risks (liens, easements, restrictions, vesting issues) and set expectations for the final title insurance coverage.

How long does it take to get a Preliminary Title Report during escrow?

In most California escrow transactions, the preliminary title report is ordered right after escrow is opened and is often available within a few days. Timing depends on the county, the complexity of the chain of title, and whether there are recorded liens, judgments, probate issues, or trust vesting details that require additional review.

What are “exceptions” in a preliminary title report (Schedule B exceptions)?

Exceptions (often shown as Schedule B exceptions) are items the future title insurance policy may not cover. In California, these can include recorded easements, CC&Rs, deed restrictions, matters shown on a survey, or certain public record notices. Reviewing exceptions early helps buyers and lenders understand what risks may remain even after title insurance is issued.

What liens and encumbrances commonly appear on California title reports?

Common liens and encumbrances found in a California title search include mortgages (deeds of trust), property tax liens, HOA liens, judgment liens, and mechanic’s liens from unpaid contractors. The preliminary title report lists these recorded claims so they can be paid off, released, subordinated, or otherwise resolved prior to closing.

How do easements and CC&Rs affect property use in California?

Easements grant another party rights to use part of the property (utility, access, shared driveway), while CC&Rs set community rules that may limit rentals, pets, exterior changes, parking, or short-term leasing. In California real estate, these restrictions can impact remodel plans, ADU additions, fencing, pools, and even resale value—so they should be reviewed before removing contingencies.

What does “vesting” mean on a California preliminary title report?

Vesting describes how the current owner holds legal title (for example, as an individual, married couple, trustees of a living trust, or through an estate). Vesting matters because it determines who must sign escrow documents and what paperwork may be required to transfer ownership. Vesting issues can also create delays if the recorded ownership does not match the seller’s legal authority to convey title.

Who typically orders the preliminary title report—buyer, seller, or lender?

In California, the preliminary title report is usually ordered by the escrow officer or real estate agent as soon as escrow is opened. The buyer, seller, and lender typically receive copies through escrow. Even though the title company prepares the report, all parties use it to confirm ownership, identify clouds on title, and determine what must be cleared before closing.

Can a seller fix title problems before listing a home in California?

Yes. Sellers can request an early title search to uncover clouds on title such as unreleased liens, recorded judgments, ownership discrepancies, old deeds of trust, or HOA-related issues. Resolving these items before a buyer is in escrow reduces closing delays, prevents last-minute renegotiations, and helps the transaction move smoothly once an offer is accepted.

What’s the difference between a standard title search and a Preliminary Title Report?

A standard title search is a research product that checks public records for ownership and recorded documents affecting title. A California preliminary title report is typically issued in connection with escrow and is formatted to support title insurance, listing conditions, requirements, and exceptions for coverage. In other words, a title search finds records; the preliminary report organizes them into what must be addressed to close.

Can I order a Preliminary Title Report from ProTitleUSA if I’m not in escrow yet?

Yes—Preliminary Title Reports can be requested through our customer service team by phone or email. If you’re preparing to sell, evaluating a refinance, or reviewing a property prior to opening escrow, we can explain the best option based on your goal. Please note our online ordering system is currently designed for standard title searches, not Preliminary Title Reports.