Buyer & Seller Guide · San Francisco & Marin
How to Read a Preliminary Title Report: A California Buyer’s Guide
A section-by-section walkthrough of the “prelim” — who owns the property, what’s owed on it, which easements run with it, and the 17-day window you have to review it in San Francisco & Marin.
A preliminary title report — the “prelim” — is one of the first documents you receive after opening escrow on a San Francisco or Marin home, and it’s one of the few protections you keep in a market where buyers routinely waive contingencies. To read it, work through six things in order: the owner’s name and signatures, the type of estate or interest, the exceptions (what’s owed and what won’t be insured), the notes (easements), the plat map, and the legal description. Below is exactly what each section tells you, the issues that surface most often in Bay Area deals, and how long you have to act on them.
The preliminary title report shows who legally owns the property, how much they’ve borrowed against it, what the title company won’t insure, and which easements run for or against the home — even whether an Ellis Act eviction was recorded. If you’re in escrow right now, read it today. Anything that raises an eyebrow is a question for your title officer or a real estate attorney.
What is a preliminary title report?
A preliminary title report is a document, prepared by a title company, that summarizes the legal status of a property’s title before a sale closes. It identifies the current owner, how title is held, the legal description, and any recorded liens or encumbrances. “Preliminary title report” (or “prelim”) is California’s standard term — in many other states the equivalent document is called a title commitment or title binder.
One nuance specific to California: a prelim is not a guarantee of title condition or a property report. Legally, it’s an offer by the title company to issue a title insurance policy on stated terms. The protection comes from the title policy, not the prelim itself — the prelim is your chance to review what that policy will and won’t cover before you commit.
Why reading the prelim matters in SF & Marin
In fast-moving markets like San Francisco and Marin — where buyers often write non-contingent offers — a careful title review is one of the few protections you don’t give away. For buyers, the prelim surfaces anything that could limit your ownership or use of the home before you’re locked in. For sellers, it confirms you can deliver clear, marketable title so a forgotten lien doesn’t derail your closing. For lenders, it’s how they confirm their loan will sit in first position. The details that get swept under the rug in the chaos of buying a home are exactly the ones the prelim exists to catch.
How to read a preliminary title report, section by section
A California prelim is typically organized into Schedule A (the basics) and Schedule B (the exceptions), plus notes and a plat map. Here’s what to check in each, and why it matters.
Owner’s name & vesting
Confirm that every owner on the report also appears on the purchase contract. If a husband and wife are both on title but only one signs the contract, escrow can’t close until both sign. This is also where you see how title is held — joint tenancy, tenancy in common, or trust.
Type of estate or interest
Listed on the same page as the owner. This tells you exactly what property rights are being sold — typically fee simple, but not always. It’s the starting point for understanding what you’re actually buying.
Exceptions (Schedule B)
The most important section. Here you’ll find property taxes, supplemental and delinquent taxes, liens, and a description of what’s been borrowed against the property — plus the items the title policy will not insure against. Read this most closely.
Notes & easements
Where easements — for or against the property — show up. The home’s driveway might cross a sliver of the neighbor’s lot to reach the street; the neighbor might have the right to walk along the side yard. If there’s even a wisp of a question, ask the title officer.
Plat map
A drawing showing the position of the lot, its size, and the likely location of easements. Useful for spotting boundary issues — which surface more often on Marin hillside lots and older SF parcels.
Legal description
Identifies the parcel by the lot-and-block method (common in subdivided SF) or by metes and bounds. This is the precise legal boundary that travels with the deed, along with the Assessor’s Parcel Number (APN).
Common issues a prelim turns up
Most prelims are clean, but the ones worth flagging tend to involve: outstanding liens (an unreleased mortgage, tax lien, or contractor’s mechanic’s lien); easements or restrictions that limit how you can use or build on the property; boundary discrepancies on hillside and older lots; unpaid or delinquent property taxes; and occasionally title defects like an error in a prior deed or an undisclosed heir. In San Francisco specifically, the prelim can also reveal a recorded Ellis Act eviction — important context for any tenant-occupied or recently-converted building. Catching these early is the entire point of the document.
Title, financing & the chain of ownership
The prelim also intersects with your loan. A few things lenders and underwriters watch — worth knowing before you’re up against a 30-day escrow:
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The 24-month chain of title. Banks review the prior two years of ownership, so a recent transfer or rapid resale will get a closer look.
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Anti-flip rules on FHA loans. A property resold within 90 days of the seller’s acquisition is generally not eligible for FHA financing. Conventional loans are usually fine but get scrutinized at appraisal.
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91–180 day resales. Eligible for FHA, but a second appraisal is typically required if the price is more than 100% above what the seller paid — and invoices may be needed to justify the increase.
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Abatements clear slowly. Some take far longer than a 30-day escrow allows, so review them cautiously and build in time.
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Multiple sellers & entities. Several owners can hold up signing — make sure escrow has everyone’s contact info. If the seller is a corporation, partnership, or LLC, the authorized signers must be verified.
How long do you have to review it? The 17-day rule
Under the standard California Residential Purchase Agreement, buyers typically have a default 17-day window to review and approve title (alongside the broader investigation contingency) — though that timeline is negotiable and is often shortened in competitive SF offers.
If the prelim reveals something you can’t live with, this is the period to object, request a fix, or — if your contingency is intact — walk away. Don’t let the report sit unread while the clock runs.
Who pays for title in the Bay Area?
Custom varies by California county. In Northern California — including San Francisco and Marin — the buyer customarily pays for the owner’s title insurance policy, whereas in Southern California the seller typically covers it. Like everything in a contract, it’s negotiable, so confirm who’s paying for what in your specific deal. The cost of the prelim itself is generally folded into those title and escrow fees.
How to resolve issues found in the prelim
If something turns up, the path forward is usually straightforward. The key is acting inside your review window.
Ask the title company
Have the title officer explain the exception and what’s needed to clear it. Many items — a paid-off loan that was never formally released, for example — clear with a simple reconveyance.
Negotiate seller-controlled items
For liens and similar issues, your agent can negotiate to have them paid off or released before closing, so title transfers clean.
Bring in a survey or attorney
Boundary or defect questions may call for a professional survey or legal review to confirm exactly what you’re buying.
Renegotiate or cancel if needed
In rare cases, a serious, unresolvable issue justifies renegotiating or canceling — with your contingency protecting you the whole way.
Final thoughts
The prelim isn’t paperwork to skim — it’s your clearest early read on whether a property can transfer cleanly. In SF and Marin’s competitive market, where speed often means giving things up, a careful title review is one protection you should never skip. Read it promptly, ask questions, and lean on your agent and title officer to interpret anything unclear.
For anything that raises a question, consult a real estate attorney. I'm a real estate broker, not an attorney, and this article is general information, not legal advice. For anything specific to your situation, consult a qualified California real estate attorney or your title officer.
Frequently asked questions
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Is a preliminary title report the same as title insurance?
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