Got a prelim in hand and not sure what it means for your Bellflower purchase? You’re not alone. That stack of pages can feel technical, yet it holds key details about liens, easements, and rules that can affect how you use the home. In this guide, you’ll learn what a preliminary title report covers, how to read it, and what to do next so you can close with confidence. Let’s dive in.
What a preliminary title report is
A preliminary title report is a snapshot of the property’s title pulled from public records. A title company issues it early in escrow to show what it will insure and what must be cleared before closing. The prelim is not the insurance policy itself. It outlines requirements and exceptions that matter for your coverage.
Most prelims follow a standard format:
- Schedule A lists the parties, legal description, and effective date of the title search.
- Schedule B – Part I (Requirements) shows what must be satisfied before the policy is issued, like paying off an existing loan.
- Schedule B – Part II (Exceptions) lists items that will remain on title and are not insured, such as easements or CC&Rs, unless resolved.
Prelims are usually ordered once your offer is accepted and escrow opens, often by your lender or escrow officer. Title companies can update the report if new documents are recorded before closing, so expect a refresh near the finish line.
What to look for in Bellflower prelims
Bellflower buyers tend to see a few common items on prelims. Here’s what they mean and why they matter.
Loans, deeds of trust, and reconveyances
Look for recorded loans in the seller’s name. Any outstanding deed of trust must be paid off and reconveyed before you receive a clean owner’s title policy. Escrow typically obtains payoff statements and coordinates recording.
Property taxes and special assessments
Confirm the current tax status and whether any amounts are delinquent. Some parcels carry Mello-Roos or other community facilities district assessments, especially in newer developments. When ownership changes or when new construction is completed, supplemental taxes can be billed separately. Unpaid taxes and special assessments are senior liens and are usually paid at or before closing.
Mechanics’ liens
Contractors or subcontractors can record a mechanics’ lien for unpaid work. These liens cloud title and need to be cleared or addressed before closing. Escrow may hold funds or require releases if a mechanics’ lien appears.
Judgments and tax liens
Recorded civil judgments or federal tax liens can attach to the property. Title will require a payoff, release, or subordination before issuing the policy.
Lis pendens and foreclosure notices
A lis pendens signals pending litigation that affects title. A Notice of Default or Notice of Trustee’s Sale indicates foreclosure activity. These require immediate clarity because many lenders will not fund a loan until the issue is resolved.
Easements and rights-of-way
Expect to see utility, access, or drainage easements in Los Angeles County. Easements can limit where you can build, fence, or landscape. Review the location and purpose to make sure they do not interfere with your plans.
CC&Rs and HOA matters
Recorded Covenants, Conditions and Restrictions (CC&Rs) may limit use, set architectural controls, or restrict renting. If the property is in an HOA, the prelim may reference CC&Rs, but you will still need the full HOA package: rules, bylaws, budgets, and any estoppel statement that shows outstanding dues or assessments. California’s Davis-Stirling Act sets the framework for HOA disclosures.
Restrictions and encroachments
Deed restrictions can limit certain uses. Encroachments across property lines are often found by a survey rather than the prelim. If boundaries look tight or improvements sit near the line, consider ordering a survey and asking about a survey endorsement for your policy.
Vesting and ownership
How you take title affects survivorship and transfer. Make sure vesting instructions are clear and correct so title can prepare the final documents without delay.
Unrecorded interests
A prelim reflects recorded documents only. Unrecorded leases, oral agreements, or prescriptive rights might not appear. For peace of mind, check permit history and consider a boundary review when property lines or improvements are unclear.
How to read and respond to your prelim
Understanding who does what and when helps you move fast if issues pop up.
Who does what
- Title company searches records, issues the prelim, sets requirements, and handles recording at close.
- Escrow officer coordinates payoffs and ensures requirements are met before releasing funds.
- Your agent helps interpret the prelim, flags concerns, and coordinates with the seller and escrow to clear items or negotiate solutions.
- Your lender reviews the prelim and may require certain exceptions be cleared before funding.
Typical escrow timeline
- Early escrow: Prelim is ordered and delivered to the parties.
- Mid-escrow: You and your agent review Schedule A and Schedule B, then work with escrow to address requirements and exceptions.
- Pre-closing: Title updates the search to capture any new recordings; final payoffs and releases are prepared.
- Closing: Deed and reconveyances record, funds disburse, and title policies are issued.
Red flags and practical fixes
- Outstanding loan: Escrow obtains payoffs and records a reconveyance.
- Lis pendens: Seller must resolve or dismiss the case; you may negotiate timelines or cancellation rights if it cannot be cleared in time.
- Undisclosed assessments: Verify on the tax bill; negotiate credits or prorations if appropriate.
- HOA issues: Request full HOA docs and an estoppel letter to confirm dues, special assessments, and any pending litigation.
- Mechanics’ lien: Obtain releases or consider an escrow holdback while the dispute is resolved.
- Judgment or tax lien: Require payoff or release prior to close.
When to order extra reports or endorsements
You may want more information based on what the prelim shows and your plans for the property:
- Survey or boundary check for close setbacks, irregular lots, or planned additions.
- Full HOA package and estoppel for any common interest property.
- Municipal records check for permit history, code enforcement, or unpermitted work.
- Environmental or geologic reports in specialized cases.
- Title endorsements such as a survey or condo endorsement, depending on property type and exceptions.
Bellflower buyer checklist for your prelim
Use this list with your agent and escrow officer.
Basic identification
- Verify Schedule A: buyer and seller names, legal description, and APN are correct.
- Confirm your intended vesting is correct in closing documents.
Liens, claims, and encumbrances
- Check for recorded loans, mechanics’ liens, judgments, or tax liens. If any appear, confirm the payoff or release plan.
- Look for a Notice of Default or lis pendens and get the status and resolution plan.
Taxes and assessments
- Confirm property taxes are current or how they will be handled at closing.
- Check for Mello-Roos or other special assessments and how they will be prorated or paid.
Easements and use restrictions
- Review Schedule B exceptions for easements and restrictions that could affect access or planned improvements.
- Note any use limits such as commercial prohibitions or rental restrictions.
CC&Rs and HOA
- If CC&Rs or an HOA are referenced, request the full HOA documents and an estoppel letter.
- Confirm dues, any special assessments, and rules that matter to you.
Survey and physical issues
- Consider a survey if boundaries look tight or irregular.
- Ask about a survey endorsement if you decline a full survey.
Schedule B – Part I requirements
- Review each requirement and confirm who is responsible for clearing it and by when.
Closing readiness
- Confirm title will update the search before closing to catch new recordings.
- Arrange for escrow holdbacks or credits if any items will take time to finalize.
Documentation and protections
- Plan to purchase an owner’s title insurance policy at closing.
- Request copies of all recorded documents referenced in the prelim for your records.
- Consider attorney review for complex issues like litigation, extensive encumbrances, or boundary disputes.
Communication and negotiation
- If a significant issue appears, discuss whether to request seller cure, price adjustment, escrow holdback, or a cancellation right.
- Keep your lender informed. Some title issues can affect loan approval.
Local resources to know
If you need to dig deeper, these are common places to check in Bellflower and Los Angeles County:
- Los Angeles County Registrar-Recorder/County Clerk for recorded deeds, liens, easements, notices, and maps.
- Los Angeles County Assessor for APN, assessed value, and ownership records.
- Los Angeles County Treasurer and Tax Collector for tax bills, special assessments, and Mello-Roos/CFD information.
- City of Bellflower Community Development and Building & Safety for permits, code enforcement, and planning.
- Los Angeles County Public Works and Flood Control District for recorded flood control and drainage easements.
- California Department of Insurance for title insurance rate and policy regulation.
- American Land Title Association and California Land Title Association for policy forms and common endorsements.
- Davis-Stirling Common Interest Development Act materials for HOA disclosure requirements.
Final thoughts and next steps
Your prelim is a roadmap to closing with clear title. Focus on what will remain on title, what must be cleared, and how each item affects your use of the property. With a clean plan for payoffs, releases, HOA documents, and any needed surveys or endorsements, you can move through escrow with confidence.
If you want help reviewing your prelim and coordinating next steps with escrow and title, our local team is here to guide you from offer to keys. Reach out to The Elmer Team to get answers, a clear action plan, and support through closing.
FAQs
What is a prelim and how is it different from title insurance?
- A prelim summarizes the current state of title and lists requirements and exceptions, while the title insurance policy is issued at closing to protect against covered title defects.
How quickly are prelim issues cleared in a Bellflower escrow?
- Simple items like loan payoffs are often handled during escrow, while litigation, mechanics’ liens, or complex easements can take longer and may require holdbacks or extended timelines.
What are Mello-Roos and supplemental taxes in Bellflower?
- Mello-Roos or other CFD assessments are special taxes that may appear on the tax bill, and supplemental taxes can be triggered after a change in ownership or new construction.
How do easements affect future improvements on my property?
- Easements can limit where you build, fence, or landscape; review their location and purpose and consider a survey or endorsement if improvements are planned.
Do I need an owner’s title insurance policy if my lender requires one?
- Yes, the lender’s policy protects the lender’s lien, while an owner’s policy protects your ownership against covered title defects.
