Preliminary Title Reports: San Jose Essentials

Buying or selling a home in San Jose or the East Bay comes with many moving parts. One of the most important is the preliminary title report. It is your early look at what the public record says about the property, so you can spot issues before they derail closing. In this guide, you will learn what a prelim shows, how to review it efficiently, and how to use it to negotiate and close with confidence in Santa Clara and Alameda counties. Let’s dive in.

What a prelim is and is not

A preliminary title report is an informational report prepared by a title company after escrow opens. It lists the current status of title and the exceptions the title insurer plans to exclude unless cleared. Buyers, sellers, lenders, and escrow officers use it to identify what must be resolved before the title company issues a policy.

It is not a title insurance policy. Coverage only begins when the policy is issued at closing and it will include any exceptions that remain. The prelim does not guarantee removal of listed exceptions, and it is not a warranty of title.

Who orders it can vary. It is typically ordered by the buyer’s lender or the escrow holder after you open escrow. Some sellers obtain a “seller’s prelim” before listing to surface issues early and keep timelines tight once they go under contract.

What your prelim shows in San Jose

Vesting and ownership

You will see the current owner’s name and how title is held, such as joint tenancy, tenants in common, community property, or by an entity. Vesting affects who must sign to transfer title, how taxes may be treated, and whether survivorship rights apply. Confirm that vesting matches what the seller represented. If title is held in a trust or entity, your escrow may need additional documents to close.

Liens and monetary encumbrances

The prelim lists recorded deeds of trust or mortgages, judgment liens, federal or state tax liens, and sometimes UCC filings. It may also show a lis pendens, which flags pending litigation, or a notice of trustee’s sale in a foreclosure context. These items typically require payoff and reconveyance at closing. Mechanic’s liens can arise after work is done, and they may be recorded late in escrow, so stay alert if recent construction occurred.

Easements and access

Recorded easements for utilities, driveways, parking, or public rights-of-way commonly appear, especially on older subdivisions and infill parcels. Review whether any easement could limit where you build, park, or landscape. Confirm that there is recorded access to the property, since a lack of documented access can complicate financing and insurance.

CC&Rs and HOA matters

If the property is within a common interest community, the prelim will reference recorded Covenants, Conditions and Restrictions and may reference HOA liens for unpaid assessments. CC&Rs set use rules and maintenance obligations. Title policies usually list CC&Rs as exceptions unless you obtain specific endorsements, so plan to review the documents and request an HOA payoff or estoppel letter.

Taxes and special assessments

You will see the status of property taxes, including current year amounts and any delinquencies. The report can note special taxes or assessments such as Mello-Roos Community Facilities District obligations or other local levies. Local documentary transfer taxes may apply in San Jose and across the East Bay, so confirm who pays and the rate with your title officer, since city rates can differ from county references.

Legal description and recorded maps

The legal description, assessor’s parcel number, and references to recorded subdivision maps appear in the prelim. Map references matter in neighborhoods with older tract maps, lot-line adjustments, or vacated alleys. Flood hazards, environmental conditions, or unrecorded encroachments are not shown in a prelim, so plan for separate disclosures or reports if needed.

How to review your prelim

Use this step-by-step checklist within your contingency timeline.

Verify the basics

• Confirm the assessor’s parcel number and legal description match the purchase contract and county records.
• Confirm seller vesting matches what you were told. If it differs, ask escrow for the relevant deeds and any corrective steps.

Identify liens and payoffs

• List all deeds of trust or mortgages and note the lenders so escrow can order payoff statements.
• Look for judgment liens, federal or state tax liens, UCCs, lis pendens, or trustee’s sale notices. Clarify status and whether payoff or releases are required.

Evaluate easements and access

• Create a simple inventory of every easement in the exceptions section. For each, ask if it limits use, access, or parking, or if it is utility only.
• If access or boundary location is unclear, request a current survey and discuss a survey endorsement with the title officer.

Review CC&Rs and HOA items

• If the property is in an HOA, obtain the CC&Rs, bylaws, and an HOA payoff or estoppel letter. Clarify any pending or special assessments.

Confirm taxes and special assessments

• Verify current property tax status and any delinquencies.
• Ask your title officer if Mello-Roos, CFDs, parcel taxes, or benefit assessments apply, since these are common in parts of Santa Clara and Alameda counties.

Study exceptions and exclusions

• Focus on the exceptions section. These are items the insurer will not cover unless removed or insured over. Decide which items the seller should cure and which may be handled with endorsements.

Watch for boundary and chain issues

• If easements run near structures or the lot is irregular, a survey can reduce risk. Many prelims include a standard exception for issues a survey would reveal.
• Look for gaps in the chain of title, recent quitclaim deeds, or trustee’s deeds that might indicate a cloud on title.

How buyers and sellers use the prelim

You can use the prelim to shape negotiations and keep escrow on schedule.

• Buyers often require the seller to clear liens, confirm easements, or provide credits when special assessments are discovered.
• Sellers who obtain a prelim before listing can resolve old judgments, confirm vesting, and present a cleaner package to buyers.
• Escrow coordinates payoff statements and reconveyances. If a new lien appears late, escrow may require a temporary holdback until it is resolved.
• The final title policy will mirror the prelim’s exceptions unless you remove them or request endorsements that expand coverage. Discuss available endorsements and costs with the title officer.

Title officer or attorney: who to call when

Start with the title officer

• Clarify standard prelim language and the meaning of specific recorded documents.
• Confirm payoff amounts, reconveyance timing, and routine clearance procedures.
• Request corrections to names or parcel numbers and ask for additional searches such as UCC or judgment checks.
• Ask for copies of referenced recorded documents and help interpreting easement maps or CC&Rs.

Bring in a real estate attorney when legal issues arise

• Vesting questions tied to trusts, estates, divorces, or entity ownership.
• Disputed liens, litigation, claims from undisclosed heirs, or adverse possession concerns.
• Boundary disputes, significant encroachments, or ambiguous easement language that requires legal interpretation.
• Title clouds that may require a quiet title action or other litigation, or complex corrective deeds with tax implications.

A practical approach is to begin with the title officer for factual questions, then engage counsel if the title officer flags legal ambiguity or recommends attorney-prepared documents.

San Jose and East Bay nuances to watch

• Local documentary transfer taxes vary and affect closing costs, so confirm city and county obligations early.
• Older subdivisions and infill lots may have layered easements, vacated alleys, or map conditions that affect access or building plans.
• HOA assessments and special assessments can be common, including project specific levies such as seismic or capital upgrades.
• Recent renovations increase the risk of mechanic’s liens. Ask about permits and timing, then monitor for late recorded liens near closing.
• Public works corridors and utility projects can create or expand recorded encumbrances near larger infrastructure.

A streamlined workflow for Bay Area escrows

Buyer-side quick steps

1. Ensure escrow orders the prelim immediately after opening.
2. Review using the checklist within your contingency period and request copies of all referenced documents.
3. Ask the title officer about common endorsements and any lender required coverage.
4. Request seller cures, credits, or escrow holdbacks as needed, then build them into escrow instructions.
5. Confirm final payoff amounts and reconveyance timelines before loan funding and recording.

Seller-side quick steps

1. Consider ordering a seller’s prelim before listing to surface issues early.
2. Clear obvious defects such as stale liens or incorrect vesting when feasible.
3. Coordinate payoff demands and reconveyance documents with escrow so they are ready well before closing.
4. Disclose known title issues and provide documentation to speed buyer and lender review.

Make your next move with confidence

A clear, well reviewed prelim keeps surprises out of your closing. When you pair a disciplined checklist with proactive coordination between escrow, your title officer, and legal counsel when needed, you protect your timeline and your investment. If you want an experienced partner to help you interpret title findings and align them with your strategy, connect with Gretchen Swall for a confidential consultation.

FAQs

What is a preliminary title report in California?

• It is an informational report prepared after escrow opens that shows the current status of title and lists exceptions the insurer plans to exclude unless cleared.

When do you receive a prelim in a San Jose escrow?

• It is typically ordered right after escrow opens by the lender or escrow holder, and some sellers obtain one before listing to identify issues early.

What taxes or assessments might appear in the Bay Area?

• You may see property taxes, delinquencies, and notes about special assessments such as Mello-Roos or local parcel taxes, along with references to transfer taxes.

Can you close if a lien appears on the prelim?

• Yes if the lien is addressed, which usually means payoff and reconveyance at closing or an escrow holdback until resolution, as coordinated with escrow and the title officer.

How do easements in urban San Jose affect property use?

• Easements can limit use or define access and parking, so you should review their locations and purposes, then consider a survey and endorsements if boundaries are unclear.

When should you involve a real estate attorney for title issues?

• Bring in counsel for disputed liens, boundary or easement ambiguities, probate or trust complications, chain of title clouds, or when the title officer recommends legal review.