Sellers: check your Prelims carefully!
Check your Title Reports! This is just so important. Insist that your listing agent pull your preliminary title report before you go active. It is imperative to be sure everything is there and it’s correct. There is alot of fraud right now, especially on long vacant homes, homes owned by elderly people with lots of equity, vacant land that is not owned by an LLC..just lots! If you are looking to buy or sell in the Coachella Valley, give local resident/agent, Kim Kelly a call at 760-285-3578.
5 Items to check in your Prelim (courtesy of Pacific Coast Title)
The preliminary report arrives, the property address looks right, and the transaction appears to be moving forward.
Then one line reveals an old lien, an unexpected owner, a legal-description issue, or an exception that no one discussed with the client.
A preliminary report can look routine until one detail changes the entire closing.
1. The Ownership Does Not Match the Seller
The seller may say the property is theirs, but the report may show a trust, LLC, corporation, former spouse, deceased owner, or another individual still holding title.
This can affect who must sign and what supporting documents title may need.
2. Old Loans, Liens, or Judgments
A loan may have been paid years ago but still appear because the release or reconveyance was never properly recorded.
Judgments, tax liens, support liens, assessments, and other claims may also require additional review or documentation.
3. A Legal Description That Raises Questions
The street address helps identify the property, but the legal description defines what is actually being conveyed.
An unexpected lot, parcel, easement, condominium designation, or missing portion of the property deserves attention.
4. Taxes, Assessments, or Delinquent Amounts
Property taxes, supplemental taxes, special assessments, and delinquent balances can affect proceeds and create payoff questions.
Reviewing these items early gives the parties more time to understand what may be collected or addressed through escrow.
5. Exceptions and Easements
The exceptions section may include easements, restrictions, agreements, mineral rights, access rights, or other recorded matters affecting the property.
Not every exception is a problem, but unfamiliar items should be raised before the client assumes they are unimportant.
A Relatable Example
Your seller says, “That old loan was paid off ten years ago.”
The preliminary report still shows the deed of trust because the lender’s release was never recorded. The loan may be paid, but title still needs a way to clear the recorded lien.
| The lesson: A client’s memory and the public record do not always tell the same story. |
