07/17/19

How to Read a Title Report

You have a packet of information to review and now what?

One of the most important documents to look over before closing on your home is the title report. Think of the title report, like a background check of the property. This report will give the full history of the property and flag any issues that happened in its past. Is there an easement on the property? Are there liens or back taxes?

As papers come flying your way, they all may start to look the same. We will send (via email and hard copy if requested) the documents to all parties involved with a cover sheet reading, “ALTA COMMITMENT FOR TITLE INSURANCE.”

Now’s your time to shine.

Show your spouse or fellow real estate professionals you know what to do.

  • Turn through a few pages until you find SCHEDULE A, on this page you will make sure the sale price is correct. (section 2)
  • Verify the buyers name is correct (section 2)
  • Make sure the seller is reflected (section 4)
  • Verify the legal description on the property (section 5)
  • With all the details accounted for, you can rest assured the title report is covering the correct property.
  • After going over SCHEDULE A you will turn to SCHEDULE B (reviewed in the following order).
  • Pay attention here to any SPECIAL EXCEPTIONS.
  • Review the monetary costs associated with the property (taxes, assessments, Deed of Trust, etc.).
  • Make note of the important property matters, like easements or covenants.
  • Finally, “red flags” against the property are listed, which might include bankruptcy, pending actions (divorce), specific issues for access, and foreclosure.

Our main goal of issuing a title report is to ensure a clear title.

We review all county records on the parcel and give full details on the property. Save this document. It will come in handy if something comes up, like a person or party asserting an interest in the property or an easement issue that wasn’t reported. Depending on the matter, title insurance may cover and protect your interest if a problem occurs on the title report after closing.

At Pacific Alliance Title, we thrive on supporting our clients. Be sure to communicate with your Title or Escrow representatives for any questions or concerns.

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