Reading a Property Profile / Preliminary Title Report in Temecula
Any Investor or potential home buyer of Temecula real estate should become familiar with the Property Profile and Preliminary Title Report (PTR) to avoid problems prior to closing escrow when purchasing a new home.
The Property Profile is readily available as a quick download when using the MLS or Title Company portal. Our local MLS has a link, through the APN number for a service known as ReaList. Every REALTOR worth their salt has access to both ReaList and at least one Title Company portal. In many cases much of the specific data found in the MLS is now populated directly from the data found in these records.
The Preliminary Title Report is typically ordered by the listing agent, once an accepted offer has been received, for the Temecula home for sale. There are times, when a home may have title issues, or may be prepared for a quick cash investor sale where the listing agent will order the Preliminary Title Report early in the listing process to avoid any unforeseen delays.
The Preliminary Title Report will have more detailed in depth information than the Property Profile provides. The Property Profile is intended to provide a snapshot of the legal history of the property whereas the PTR is intended to go into depth on all issues so that at the close of escrow, the Title Company can issue an insurance policy certifying there is a clear title to the Temecula home for sale.
Potential Issues Identified in a Preliminary Title Report
Vesting: The PTR will identify and verify the names on title are the correct names and that it is the same property as appears on the Purchase Agreement.
Taxes & Assessments: Taxes and Special Assessments are identified, so the buyer is fully aware. There may be a reclassification that may trigger a change in taxes due upon sale.
Deed of Trust: Many homes for sale today have loans that encumber the property with a Deed of Trust. The PTR will identify all such liens and insure they are paid in full prior to the recording of a new deed.
Identity Matters: A ‘Statement of Information' can be used to clear up any potential issues that may arise. There are times when parties to the transaction have names that are similar to others who may have liens and judgments that need to be resolved prior to the close of escrow.
Pending Actions: If there is any civil action affecting real estate, in most cases it will have to be dismissed before the Title Company can insure. Exceptions to this rule would include Probate or Divorce. While they may not have to be finalized before the home can transfer ownership, there are certain requirements that may have to be completed. As always with legal matters, don’t rely on me or my article for legal advice but seek your own Legal Counsel.
Joint Use Matters: In some of the rural areas of Temecula (and many urban areas in California and elsewhere) Driveways, party walls and easements may require a joint maintenance agreement by the new lender. If one exists, a PTR will identify the document.
Extended Coverage Matters: In rural areas, such a Temecula Wine Country, it is not uncommon for the subject property to have encroachments, lien rights or other matters that must be addressed before the lender will close. In this case, an Extended Coverage Owner’s Policy may be requested that will trigger a survey of the property be completed.
Legal Description: This is an important place to verify that the legal description found in the purchase agreement matches the Preliminary Title Report. It is important to note that all of the property being conveyed has been included in the PTR. Pay particular attention if the subject property has more than one APN.
I hope you find this information useful. When its time for me, as a professional real estate agent in the Temecula – Murrieta market and investor, for 8 years I have turned to and trusted Mary Thompson of Chicago Title. If you need the help of a REALTOR – call me… if you need the help of a Title company, please contact Mary Thompson.
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