Clearing the Path to Clear Title: What You Should Know About Preliminary Title Reports

By21admin

One of the most important (but often overlooked) parts of the escrow process is the preliminary title report. At Diamond Valley Escrow, we partner with the title company to review this document and resolve any issues that could hold up closing.

Here are some common things we see—and how we help clear them:

1. Solar Panel Filings

If the home has solar panels, you might see UCC filings or Notices on the title report. These typically mean there’s a lease or loan on the system.

  • A UCC-3 Release clears a financing statement (UCC).
  • A Termination of Notice is needed for systems under recorded contracts, and it must be notarized by the solar company.

We’ll coordinate with the seller to get these documents and remove the liens.

2. Old Trust Deeds

Sometimes old loans show up on title, even though they’ve been paid off. If that’s the case, we work with the title company to track down reconveyance documents or secure an indemnity policy if needed.

Private-party loans (like a seller carry-back) can be trickier. If too much time has passed, we may need to obtain a bond to clear the title.

3. Encroachments

These happen when something like a fence or driveway crosses over a neighbor’s property line. The buyer typically has to accept the encroachment, but it’s important to understand the legal and practical implications.

Your Diamond Valley Escrow Officer will work closely with the title company to explain what’s on the report—and how to resolve anything that might complicate your closing.