Peninsula Real Estate Guide
Understanding Your Preliminary Title Report Before You Buy
The document almost every buyer skims and almost no one actually reads closely
|
Early Escrow When You’ll Receive It |
Schedule B The Section to Actually Read |
Not a Guarantee Until the Policy Issues |
Two Policies Owner’s and Lender’s |
Somewhere in the middle of a Peninsula escrow, a document called a preliminary title report shows up in your inbox, and most buyers glance at it, see it’s long, and move on. That’s a mistake. This report tells you exactly what you’re actually buying, beyond just the structure and the lot.
What a Preliminary Title Report Actually Is
A preliminary title report, often called a “prelim,” is the title company’s summary of everything on public record affecting the property, prepared before they issue a title insurance policy. It’s not a guarantee of clear title. It’s an offer to insure, subject to specific listed conditions, and understanding those conditions is where the real value of the document lives.
The Section That Actually Matters
Schedule B: Exceptions and Exclusions
Most of the report is boilerplate. Schedule B is where the property-specific items live: easements, liens, CC&Rs, encroachments, and anything else affecting the title that will not be covered by your title insurance unless specifically addressed. This is the section worth reading line by line, not skimming.
What to Actually Look For
| Item | Why It Matters |
| Easements | Can limit where you’re allowed to build, including additions, ADUs, or fences |
| Existing liens | Must typically be cleared at closing; confirm they’re actually being paid off, not just disclosed |
| CC&Rs | Deed restrictions that can limit use, rentals, or architectural changes, separate from any HOA |
| Boundary or survey issues | Can signal an encroachment or fence line dispute worth investigating before closing |
Owner’s Policy vs. Lender’s Policy
If you’re financing your purchase, your lender requires their own title insurance policy protecting their financial interest. This is separate from an owner’s policy, which protects you personally. In California, sellers customarily pay for the buyer’s owner’s policy, but it’s worth confirming this in your specific contract rather than assuming.
Questions Worth Asking Your Title Officer
| Are there any easements that would affect where I could add an ADU or addition? |
| Are all listed liens actually being cleared as part of this transaction? |
| Do the CC&Rs restrict anything relevant to my plans, such as rentals or additional structures? |
| Is there anything unusual on this report compared to a typical property in this neighborhood? |
Key Takeaway
Your preliminary title report is one of the most overlooked documents in the entire transaction, and it’s the place most likely to reveal a restriction on your future plans before you own the property, not after.
Frequently Asked Questions
When do I receive the preliminary title report?
Typically early in escrow, giving you time to review it alongside your other contingency period tasks.
Is a preliminary title report the same as title insurance?
No, it’s an offer to insure subject to listed conditions, not the policy itself, which issues at closing.
What should I do if I find something concerning on the report?
Ask your title officer or agent to explain it in plain language before you remove any contingencies.
Who pays for title insurance in California?
Custom varies by county, but sellers customarily pay for the buyer’s owner’s policy on the Peninsula, subject to your specific contract.
| Related Reading | |
| How Long Do Homes Take to Sell in San Carlos, CA? | See where title review fits into the full escrow timeline. |
| HOA Basics for Peninsula Condo and Townhome Buyers | CC&Rs often overlap with HOA governing documents. |
| San Carlos Remodel and Addition Permits | Easements on your title report can directly affect future build plans. |
| A First-Time Homebuyer Guide for the Peninsula in 2026 | Understand where this document fits in your overall purchase process. |
Questions About a Title Report You’ve Received?
I can help you understand what’s routine and what deserves a closer look.
Holly Noto | Coldwell Banker Realty | DRE#01244498, DRE#01908304
580 El Camino Real, San Carlos, CA 94070
650.544.6185 | [email protected]
This content reflects general California title and escrow practices and is not legal advice. Consult your title officer or a real estate attorney for guidance specific to your transaction.
