1. TITLE INSURANCE & ESCROW SERVICES
INTRODUCTION TO
TITLE INSURANCE & ESCROW SERVICES

2. Agenda
General Introduction to Chicago Title-Commercial / Industrial Division
Brief explanation of Title Insurance
Explanation of the Preliminary title report
Review of “Notes” in back section of the Preliminary title report
Explanation of ALTA Extended Coverage vs. CLTA Standard Coverage
Explanation of title policy schedule A vs. Schedule B- Part I
What are Endorsements to title policies?
Why are Surveys Needed?
TSGs and Litigation Guarantees
Binders and Short Term Rates
Open discussion and questions

3. Chicago Title Advantage | Property Data Tool
Integrating Assessor Data & Images, 2D • 3D
Road • Bird’s Eye • Aerial
Easily Search Properties Nationwide By:
Site Address
Mail Address
APN (Assessor’s Parcel Number)
Intersection
National Owner’s Name
GPS Location
Draw polygon around specific area
For more information on Chicago Title’s online and mobile customer service or to receive an account for Chicago Title Advantage, please contact your Chicago Title sales executive today!
With Chicago Title Advantage, property data is just a few clicks away anytime, any day.

4. Escrow Process ESCROW PROCESS CHICAGO TITLE ESCROW DOCUMENTS
When Chicago Title receives a title/escrow package, what does Chicago Title have to do in order to close escrow?
 Be in receipt of a Purchase & Sale Agreement
Prepare Escrow Instructions and amendments, if necessary
Be in receipt of all required forms from seller: Statement of Information or Entity documents, Cal-Firpta, Firpta, 1099 forms, loan information sheet
Review and clear items on preliminary title report ( such as demands &  liens)
Prepare and receive back the approved estimated closing statements
Be in receipt of the executed Grant Deed
Be in receipt of closing funds
Schedule the Recording for “Close of Escrow”
 What are the common mistakes/omissions/issues that delay closing of escrow, and what can be done to avoid these mistakes/omissions/issues?
 Incomplete Statement of Information 
Lack of  all entity documents
Incorrect signature blocks 
Outstanding liens and/or judgments
 How long does it generally take for Chicago Title to review and ultimately close escrow?
Once all funds and documents are received, scheduling the closing date is determined on the purchase agreement.  An average closing date is 30 days.
CHICAGO TITLE ESCROW DOCUMENTS
What is the proper way of completing and executing Chicago Title Escrow Documents for different types of entities and vesting?
A review of the vesting, as per the preliminary title report, will determine who and how the documents (and Grant Deed) must be signed.
Is the owner an Individual or Entity? Complete full names must be used.

5. HOW TO READ A PRELIMINARY REPORT
eBooks Available
HOW TO READ A PRELIMINARY REPORT
CLICK HERE

6. What is Title Insurance?
Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event
TITLE INSURANCE PROTECTS YOUR ASSETS
Title insurance gives you the assurance that possible clouds on title to the property you are purchasing have been called to your attention so that such defects can be corrected before you buy
ONLY ONE PREMIUM
Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner’s Title Insurance Policy in force.

7. The Title Company’s Role in a Real Estate Transaction
The role of the title company is to search for and examine public records – investigate all information surrounding title to the property. The facts that are uncovered during the initial search will determine:
That the seller is, in fact, the legal owner of the property.
That the “estate” or degree of ownership being sold is currently and accurately vested with the seller.
The presence of any unsatisfied liens which must be satisfied before “clear title” can be conveyed.
Existing restrictions, easements, rights of way or other rights granted to others who are not owners which may limit the right of ownership.
The status of property taxes and other public or private assessments.

8. Preliminary Title Report
The Preliminary Report is an offer to issue a policy of title insurance covering a particular estate or interest in land, subject to stated exceptions.
Provides a list of matters which will be shown as exceptions to coverage in a designated policy.
Those matters shown in the report are as follows:
The Estate of the interest covered
Owner of the estate or interest
The parcel of land involved
The exceptions, liens, encumbrances, and other risks which will not be insured against if a title policy is issued
Other requirements and provisions which are reflected as “notes” in the preliminary report which are removed if and when a title policy is issued

9. Preliminary Report FAQ
How does the Preliminary Report affect the real estate transaction? The Preliminary Report provides the opportunity, prior to purchase, to review matters affecting the property which may require clearing prior to the transaction closing, or which will be excluded from coverage under the title insurance policy. When and how is the Preliminary Report produced? Shortly after escrow is opened, an order will be placed with Chicago Title to begin the process of “searching” various public records and recorded matters relative to both the property and the parties to the transaction. This information is then compiled into the Preliminary Report for the parties’ review. Why do I need to carefully read the Preliminary Report? Examine thoroughly all ownership rights and claims, as restrictions and encumbrances may pass along with the property to the new owner. Examples of “red flags” include: Mechanics’ Lien, Lis Pendens, Bankruptcy, Uninsured Deed, Access

10. How To Read Plat Maps
If you would like to request an Assessor’s Plat Map specific to your property or if you would like more information, please contact your local Chicago Title sales executive.
* The material discussed is meant for general illustration, and it is for informational purposes only. It is not to be construed as tax, legal, or investment advice. All information deemed reliable but is not guaranteed.

11. Standard vs. Extended | Title Insurance Coverage

12. Title Policy Comparison
Please note that the above coverages are subject to the specific Exceptions to Title, Exclusions and the Conditions and Stipulations as set forth in each policy form. Special conditions, deductibles and caps apply for certain coverages in the ALTA Homeowner’s policy. Policy coverage is subject to change without notice, except as required by the California Department of Insurance.

13. eBooks Available
ENDORSEMENT GUIDE
CLICK HERE

14. Endorsement Conversion Chart

15. Mechanics’ Lien
Pursuant to Senate Bill SB 189, California’s laws regarding mechanics’ liens were modified in July of Some of the changes to the enforcement procedures for mechanics’ liens are
A separate index will be maintained for preliminary notices filed with the county recorder (CC§8214).
A mechanics’ lien release bond will be in the amount of 125% of the amount of the claim of lien (CC§8424).
A notice of completion with required warning language may be recorded on or within 15 days after the date of completion (CC§8182 and 8416).
The preliminary notice form and the waiver of release forms for progress payments and final payment have been revised (CC§8132 and 8138).
For deeds of trust recorded with priority, an optional advance of funds by the construction lender that is used for construction costs has the same priority as a mandatory advance of funds by the construction lender, provided that the total of all advances does not exceed the amount of the original construction loan (CC§8458).
New, 20-day requirement for filing a notice of pendency of action (CC§8461).
A court may dismiss an action to foreclose a mechanics’ lien if it is not brought to trial within two years after commencement of the case.
After service of a bonded stop payment notice, a construction lender must give written notice within 30 days of the lender’s election to not withhold funds for the claimant.
For certain projects involving construction loans in excess of $5,000,000, an owner may be required to provide security in the form of a surety bond, irrevocable letter of credit, or escrow account. Chapter 697 (SB 189 – Lowenthal).

16. REAL ESTATE LAW AND CUSTOMS BY STATE
eBooks Available
REAL ESTATE LAW AND CUSTOMS BY STATE
CLICK HERE

17. Trustee Sale Guarantee (TSG)
What is a TSG?
A “Trustee Sale Guarantee”, commonly referred to as a “TSG”, is a title
report given to a trustee to provide recorded information pertinent to
the foreclosure process. The TSG assists the lender in a non-judicial
foreclosure permitted in some states. The foreclosure process begins
when the trustor defaults in the performance of their loan obligation to
the lender. Each state may prescribe specific laws as to the foreclosure
process and required notices.
What information is included in a TSG?
Legal description and vesting of title to the property
Mortgage or Deed of Trust(s) recorded
Encumbrances and liens on the property
Property taxes and bankruptcies
Names/addresses of individuals/entities who must receive notice of the foreclosure proceedings
Newspaper qualified for publication of the foreclosure proceedings
City or Judicial District in which the land is located

18. Chicago Title Interim Binder
The Interim Binder is not, in itself, a policy of title insurance but is an Interim Binder issued on the property. When issued, however, it binds Chicago Title, if requested within the 2-year period, to issue a policy of title insurance
FACTS
Property was last insured
1/2 years ago
Mr. A sells the property to Mr. B for $500,000
In less than 2 years, Mr. B sells to Mr. C for $600,000
Without an Interim Binder:
Original Sales Price: $500,000
Homeowner’s Title Fee: $1,509
Sells within 2 Years: $600,000
Homeowner’s Title Fee: $1,683
Mr. B pays $1,683 to resell his property
With an Interim Binder:
Original Sales Price: $500,000
Homeowner’s Title Fee: $1,509
Buyer Pays Additional 10% $151
Sells within 2 Years: $600,000
Homeowner’s Title Fee: $1,683
Less the Original Fee: $1,509
Interim Binder Fee for Conversion: $174
Mr. B pays $325 to resell his property ($151 + $174)
$1,358 SAVINGS

19. THANK YOU!