Reviewed by the Sky Escrow team, a California DFPI-licensed escrow company serving Los Angeles County.
Last updated: August 25, 2026
A preliminary title report is a document a title insurance company issues during escrow showing the property’s current recorded owner (“vestee”), its legal description, and the specific exceptions and exclusions it proposes to leave out of a future title insurance policy. It is an offer to insure on stated terms — not a guarantee that title is clear, and not the title policy itself.
What Is a Preliminary Title Report?
A preliminary title report — often called a “prelim” — is prepared by a title company after it searches the public record for a specific property. It states who the title company would insure title in favor of, and on what conditions, if a policy were issued today.
The prelim is not a summary of the property’s full ownership history, and it is not a warranty that title is free of problems. It is the title insurer’s disclosure of what it found and what it will and will not stand behind — the actual coverage only takes effect when a title report escrow closes and a policy is issued. See Title Insurance in California for how the eventual policy works.
Why a Preliminary Title Report Is an Offer to Insure, Not a Guarantee
California courts and title industry practice both treat the prelim as a conditional offer, not a representation of the state of title. The title company can amend or withdraw the offer any time before a policy is issued — for example, if a new lien or judgment is recorded against the seller after the report date.
This distinction matters for a buyer reading a prelim title report California escrow provides: it reflects the public record as of a stated effective date, not necessarily the record as it exists on your closing day. That is one reason escrow and title continue to monitor the record until closing.
How to Read Schedule A: Vesting and Legal Description
Schedule A identifies the basic facts of the transaction being insured. Reading it correctly means confirming these items match the purchase agreement and escrow instructions:
- Vestee — the current record owner(s) of the property, and exactly how they hold title (for example, as an individual, married couple, trust, or entity).
- Legal description — the lot, tract, and map reference (or metes-and-bounds description) that legally identifies the parcel, distinct from the street address.
- Estate or interest to be insured — typically fee simple ownership, though it can be a leasehold or other interest.
- Effective date — the date through which the title company searched the record; anything recorded after this date is not yet reflected.
If the vestee name on Schedule A doesn’t match the seller named in the purchase agreement, that discrepancy needs to be resolved — often through a name variation affidavit or additional documentation — before escrow can close.
How to Read Schedule B: Exceptions and Exclusions
Schedule B is where most of the substance of a preliminary title report lives. It lists the specific items the title company proposes to exclude from coverage — meaning the buyer would take title subject to these matters unless they are addressed before closing.
Common Schedule B items include:
- Property taxes — current and any supplemental assessments, prorated at closing.
- Recorded easements — utility, access, or drainage easements that run with the land.
- CC&Rs — covenants, conditions, and restrictions recorded by an HOA or original subdivider, which govern use of the property.
- Deeds of trust and mortgages — existing loans recorded against the property, which the seller is generally expected to pay off through escrow.
- Judgments and liens — recorded money judgments, mechanic’s liens, or tax liens against a prior owner.
- Unrecorded matters — items a survey or physical inspection might reveal that don’t appear in the public record.
Schedule B also typically references a set of standard printed exclusions common to most policies — categories of risk (such as government land-use regulation or matters not shown in the public record) that title insurance never covers, regardless of the specific property.
Why Buyers Should Review the Prelim Before Removing Contingencies
In a typical California purchase, the buyer’s contingency period includes a window to review the preliminary title report before removing the title contingency. This is the buyer’s opportunity to flag anything on Schedule B that needs to be cleared, paid off, or explained before closing — not after.
In practice, some items are routine and expected — recorded easements or a standard HOA’s CC&Rs rarely block a sale. Others, like an unexpected lien, judgment, or a deed of trust the seller didn’t disclose, need a payoff demand or written resolution before the buyer should sign off. Escrow coordinates these requests with the title company and seller, but the buyer (and their agent or attorney) should still read the report directly rather than relying solely on a summary.
For how this review fits into the broader closing sequence, see How Does Escrow Work in California?.
Preliminary Title Reports in Los Angeles County
Title companies operating in Los Angeles County search records held by the Los Angeles County Registrar-Recorder/County Clerk, which is where deeds, deeds of trust, liens, and CC&Rs affecting a property are recorded. A prelim’s effective date is tied to what has been indexed by that office as of the search date.
Escrow companies, including Sky Escrow, are licensed and regulated by the California Department of Financial Protection and Innovation (DFPI) under the California Escrow Law. Title insurance companies are a separate regulated industry, licensed by the California Department of Insurance (CDI) — a distinction worth knowing, since escrow, title, and the county recorder each play a different role in the same closing.California Department of Insurance — title insurance overview
Frequently Asked Questions
Is a preliminary title report the same as title insurance?
No. A preliminary title report is an offer to issue a title insurance policy on stated terms; the title insurance policy itself is only issued once escrow closes and coverage takes effect. See Title Insurance in California.
Who orders the preliminary title report?
The title company prepares it, typically after escrow or the listing agent opens a title order early in the transaction. Escrow then distributes the report to the buyer, seller, agents, and lender for review.
What are Schedule B exceptions on a title report?
Schedule B exceptions are specific recorded matters affecting the property — such as easements, CC&Rs, liens, and existing loans — that the title company proposes to exclude from the coverage it’s offering, unless they are cleared before closing.
Can a buyer object to items on a preliminary title report?
Yes. During the contingency period, a buyer can request that the seller clear specific items — such as paying off a lien or resolving a judgment — before removing the title contingency. Items the buyer is comfortable accepting, like standard recorded easements, typically remain as exceptions on the eventual policy.
How long is a preliminary title report valid?
A prelim reflects the public record only as of its stated effective date. Because new documents can be recorded at any time, title companies typically update or re-run the search close to closing to confirm nothing new has been recorded .
Does escrow or the title company handle the preliminary report?
The title company researches and issues the preliminary title report. Escrow’s role is to receive it, distribute it to the parties, track any items that need to be cleared before closing, and coordinate payoffs or releases through the closing process.
Contact and Trust Information
Sky Escrow, Inc.
15760 Ventura Blvd, Suite 1050, Encino, CA 91436
Phone: (818) 712-0000 / (888) 891-0002
Email: info@skyescrow.com
Licensed by the California Department of Financial Protection and Innovation (DFPI). License No. 96DBO-214073. License status: Active.
This article is for general informational purposes only and is not legal, financial, or tax advice. Consult a qualified professional about your specific transaction.
The most reliable way to know what a preliminary title report means for your specific closing is to read Schedule A and Schedule B line by line with your escrow officer before your title contingency deadline, not after. Sky Escrow distributes and walks buyers, sellers, and agents through preliminary title reports as a routine part of managing escrow across Los Angeles County.