Title Consumers Series

The Title Consumer is published by the California Land Title Association. Member companies of the California Land Title Association are dedicated to facilitating the transfer of real property throughout California and increasing the public's awareness of the value and purpose of title insurance.  This communication is provided for informational purposes.  It is general in nature and is not intended to and should not be relied upon or construed as legal or tax advice.  Please consult with an attorney or accountant for further questions regarding these matters discussed in the Title Consumer publications.

The CLTA requires only that the following quote be included when reprinting (including an approximate date to determine whether or not a publication is the most current version):   "Reprinted with the permission from the California Land Title Association (date ________  )"
1.  Understanding Title Insurance
​What is title insurance?  If you've purchased a home you may be familiar with the benefits of title insurance. However, if this is your first home, you may wonder, "Why do I need yet another insurance policy?"  While a number of issues can be raised by that question, we will start with a general answer.
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2.  Understanding Closing and Title Costs
​The big day to sign the documents has arrived. Signing the documents and escrow instructions will authorize the Escrow Holder to move the transaction toward closing. 
3.  ​Understanding Common Ways of Holding Title
How should I take ownership of the property I am buying?  This important question is one California real property purchasers ask their real estate, escrow and title professionals every day. Unfortunately, though these professionals may identify the many methods of owning property, they may not recommend a specific form of ownership, as doing so would constitute practicing law.
4. Understanding Condominium and PUD Ownership
​California's builders, in an effort to combat the dual problem of an increasing population and a declining availability of prime land, are increasingly turning to common interest developments (CIDs) as a means to maximize land use and offer homebuyers convenient, affordable housing.
5.  Understanding the Language of Real Estate
To the unfamiliar, it can often confuse and bewilder.  Fannie Mae and Freddie Mac. ARMS and APR. Clear title and Clouded title. Though these terms have special meaning to real estate professionals, they may often be meaningless to the consumer.
6.  Understanding Living Trusts
While not comprehensive, following are answers to many commonly asked questions. If you have questions that are not answered below, your title company representative may be able to assist you, however, one may wish to seek legal counsel.
7.  Understanding Mello-Roos
​When purchasing your new home, your future monthly payments will be made up of principal, interest, real property taxes and insurance, but what is the tax for the Community Facilities District, otherwise known as a Mello-Roos District. The CLTA has answered some of the questions most commonly asked about the Mello-Roos Community Facilities Act of 1982.
8.  Understanding Preliminary Reports
After months of searching, you've finally found it, your perfect dream home. But is it perfect? Will you be purchasing more than just a beautiful home? Will you also be acquiring liens placed on the property by prior owners? Have documents been recorded that will restrict your use of the property?
9.  Understanding Probate
Everyone has a will or plan, whether created or by default. Even if you have not made out a will or a trust, you still have a plan – a plan dictated by the laws of the state where you reside upon your death. Making a will is not a way to avoid "probate", the court procedure that changes the legal ownership of your property after your death. Probate makes sure it is your last valid will, appoints the executor named in your will and supervises the executor’s work. 
10.  Understanding Required Reporting to the I.R.S.
Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service. This required reporting of information is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance with the Internal Revenue Code and aid in audit and enforcement efforts by the I.R.S.
11.  Understanding Statements of Information
What's in a name? When a title company seeks to uncover matters affecting title to real property, the answer is, "Quite a bit."  Statements of Information provide title companies with the information they need to distinguish the buyers and sellers of real property from others with similar names. After identifying the true buyers and sellers, title companies may disregard the judgments, liens or other matters on the public records under similar names. 
12.  Understanding Subdivision Public Reports
The Subdivision Final Public Report ("Public Report") is a disclosure statement for the public which permits the sale or lease of lots, parcels or units within a subdivision. Just as corporations must obtain approval to issue and sell stock certificates, a developer must obtain approval to sell or lease five or more lots, parcels or units within a subdivision.
13. Understanding Supplemental Property Taxes
They have been with us since July of 1983, but you and your neighbors still may not know what they are, what they do, and how they affect you and your property. To help you better understand this confusing subject, the California Land Title Association has answered some of the questions most commonly asked about supplemental real property taxes.
14.  Understanding Title Insurance Requirements for Insuring Trusts
In today’s world of busy probate courts and a desire for privacy, the living trust has become a common manner of holding title to real property. The following may help you understand a few of the requirements of the title insurance industry if title to property is conveyed to the trustee of a living trust.
15.  Understanding Withholding on Real Estate Sales​
California has been withholding the prepayment of taxes for real estate transactions involving non-residents for many years. As of January 1, 2003, the withholding laws were amended to also apply to the dispositions of California real estate by both residents and non- residents.
16.  Why Lenders Require Title Insurance When Refinancing Your Home
Lower interest rates have motivated you to refinance your home loan. The lower rate may save you a tremendous amount of money over the life of the loan, but you should also expect to pay the lender the typical closing costs associated with any new loan, including service fees, points, title insurance protection and other expenses.
17.  10 Good Reasons Lenders Should Say No to Priority Losses
The best way to avoid problems is to anticipate them. This brochure was reprinted in part with permission granted by the Nevada Land Title Association.
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18. Discriminatory Racial Covenants and their Removal from Antiquated Real Property Records
Discriminatory racial covenants were private covenants put into recorded documents attempting to prohibit persons of particular races or ethnic backgrounds from owning or occupying homes in certain areas, resulting in segregation within residential neighborhoods throughout the country.

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