While escrow holds the funds, a title company works in parallel to confirm the seller actually owns the property free of undisclosed claims, and to determine how the buyer will hold ownership once it transfers. Chain of title traces every past owner and recorded document; encumbrances and easements surface anything that limits what an owner can do with the property; CC&Rs spell out obligations that come with certain communities. Vesting — community property, joint tenancy with right of survivorship, and the other forms listed here — determines what happens to the property later, including at death or divorce, so getting it right at closing matters well beyond the closing date itself. The deed that ultimately transfers title is the single most important document this category produces.
- CC&Rs
- Covenants, Conditions, and Restrictions — rules recorded against a property that govern how it can be used. Common in planned developments and HOA communities. CC&Rs run with the land and bind all future owners.
- Chain of Title
- The chronological history of all recorded documents affecting ownership of a property from the earliest recorded conveyance to the present. A clear chain of title is essential for marketable title.
- Easement
- A right to use another person's land for a specific purpose. Common easements include utility easements, access easements, and drainage easements. Easements are typically shown on the preliminary title report.
- Encumbrance
- Any claim, lien, charge, or liability attached to a property that may affect its value or transfer. Common encumbrances include mortgages, liens, easements, and CC&Rs.
- General Index (GI)
- A public records database searched by the title company using the names from the Statement of Information to identify any judgments, liens, or other matters recorded against the parties to the transaction.
- Grant Deed
- The most common deed used in California to transfer title from seller to buyer. It contains an implied warranty that the grantor has not previously conveyed the property and that the title is free from encumbrances made by the grantor.
- Interspousal Deed
- A deed used to transfer property between spouses or registered domestic partners, commonly used to add or remove a spouse from title or to confirm separate property status.
- Joint Tenancy
- A form of co-ownership where two or more persons hold equal shares with the right of survivorship. When one joint tenant dies their interest automatically passes to the surviving joint tenant(s) without probate.
- Lender's Title Policy
- A title insurance policy that protects the lender against covered title defects. Required by virtually all institutional lenders. The buyer typically pays for this policy.
- Lien
- A legal claim against a property as security for a debt or obligation. Liens must generally be paid off before or at closing. Common types include mortgage liens, tax liens, and mechanic's liens.
- Marketable Title
- Title that is free from reasonable doubt, liens, and encumbrances that would allow the property to be sold or mortgaged at its fair market value. A title company must be willing to insure marketable title.
- Mechanic's Lien
- A claim filed by a contractor, subcontractor, or supplier who provided labor or materials to improve a property and has not been paid. Mechanic's liens can cloud title and must be resolved before closing.
- Notary Public
- A state-appointed official who verifies the identity of document signers and witnesses their signatures. Most real estate documents including grant deeds and deeds of trust must be notarized before recording.
- Owner's Title Policy
- A title insurance policy that protects the buyer against covered title defects. In California the seller typically pays for the owner's policy. It remains in effect for as long as the owner or their heirs hold title.
- Power of Attorney (POA)
- A legal document authorizing one person to act on behalf of another in legal and financial matters. A durable POA remains effective if the principal becomes incapacitated. Must be approved by the title company before use in escrow.
- Preliminary Change of Ownership Report (PCOR)
- A form required by California law to be filed with the county recorder at the time of recording a transfer of real property. It provides information used by the county assessor to determine if a property tax reassessment is required.
- Property Tax Reassessment
- The revaluation of a property for tax purposes triggered by a change of ownership. Under Proposition 13 properties are reassessed to current market value upon sale which can significantly increase property taxes.
- Proposition 19
- A California constitutional amendment effective February 2021 that allows eligible homeowners 55 or older, severely disabled, or disaster victims to transfer their property tax base to a replacement home anywhere in California. It also significantly limits the parent-child exclusion for inherited properties.
- Quitclaim Deed
- A deed that transfers whatever interest the grantor may have in a property without making any warranties about the quality of title. Commonly used between family members or to clear title issues.
- Recording
- The process of filing documents with the county recorder's office to give public notice of a transaction. Recording the grant deed and deed of trust is the final step that transfers ownership and secures the lender's interest.
- Sole and Separate Property
- Property owned entirely by one individual with no co-owners. A married person taking title as sole and separate property must have their spouse sign a quitclaim deed or interspousal deed relinquishing any community property interest.
- Tenancy in Common
- A form of co-ownership where two or more persons each hold an undivided interest in a property. Interests do not have to be equal and there is no right of survivorship — each owner's interest passes through their estate upon death.
- Title
- Legal ownership of real property. Title represents the right to own, use, and transfer real estate and is evidenced by a deed recorded in the county where the property is located.
- Title Insurance
- Insurance that protects against losses arising from defects in title that existed before the policy date but were unknown at the time of purchase. There are two types: owner's policy and lender's policy.
- Title Supplement
- A document issued by the title company after the preliminary title report that updates the status of title items. A supplement can show one of three outcomes: an item has been eliminated, a requirement has been satisfied, or a new item has been added with details of any associated debt.
- Trust
- A legal arrangement where a trustee holds and manages property for the benefit of beneficiaries. Property held in trust passes outside of probate upon the death of the trustor.
- Trust Certification
- A shortened document that confirms the existence of a trust and identifies the trustee's authority to act without requiring disclosure of the full trust agreement. Used by escrow and title in lieu of the complete trust document.
- Trustee
- The person or entity that holds legal title to property in a trust and manages it according to the terms of the trust agreement for the benefit of the beneficiaries.
- Vesting
- The manner in which a buyer or borrower holds legal title to real property. Vesting determines ownership rights, survivorship, and how the property can be transferred or encumbered.