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- April 16, 2025
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How to Read a Title Report When Buying a Home (Without a Lawyer)
Why This Matters
When you’re buying a property—whether it’s a single-family home, a fourplex, or a larger multifamily building—the title report is one of the most important documents you’ll receive during escrow. It tells you who really owns the property, whether the seller has the right to sell it, and what other claims or restrictions might be attached.
But here’s the thing: most homebuyers never actually read the title report.
We get it—it’s full of legalese and boilerplate. And usually, the escrow officer and title company clear most issues before closing. But sometimes, small things get missed… and those small things can cost you big time later. And that is why understanding title report is important for a buyer.
So, let’s demystify the process.
What Is a Title Report, Really?
A preliminary title report (or “prelim”) is a document prepared by a title insurance company. It outlines:
- Who currently owns the property
- The legal description (not just the address!)
- Existing liens, loans, easements, CC&Rs, or restrictions
- Anything that could affect your ownership rights
If you’re getting title insurance (and you should), this is the company’s way of saying: “Here’s what we won’t cover unless it gets resolved.”
9 Things Buyers Should Look For in a Title Report
Here’s a checklist of what to review before you close:
1. The Owner’s Name
Make sure the current owner is exactly who’s selling you the property. If it’s in a trust, LLC, or recently transferred, ask questions.
2. Legal Description
Look for lot numbers, condo designations, or parcel splits. For condos or PUDs, confirm shared walls, areas, or common spaces.
3. Liens or Loans
Check for deeds of trust (mortgages), mechanics liens, or court judgments. These need to be cleared before or at closing.
4. Unpaid Taxes
Are any tax installments open or delinquent? This should be paid through escrow, but it’s a red flag if back taxes exist.
5. Easements
Does anyone else have rights to use part of the property? Common examples are utility companies, shared driveways, or alley access. To know more about easements in California read here.
6. CC&Rs / HOA Restrictions
If you’re buying a condo, townhome, or a property in a planned community, there may be use restrictions, fees, or HOA rules to follow.
7. Maintenance Agreements
Sometimes neighboring properties share driveways, walls, or fences, with recorded agreements that must be followed.
8. Recent Transfers or Quitclaims
Has the property recently changed hands? If so, dig into why and confirm there are no disputes over ownership.
9. Unrecorded Agreements
Often noted as “rights of parties in possession.” Ask for all current lease agreements and tenant information if someone is living there.
Do You Need a Lawyer?
In most residential real estate transactions (especially in California), buyers don’t hire attorneys to review title reports—and that’s perfectly fine if you know what you’re looking at.
But consider hiring a lawyer if:
- There are shared-use agreements, unusual easements, or multiple owners involved
- You’re buying investment property or land for development
- There are title defects or disputes uncovered in the report
Even a one-hour consultation with a real estate attorney can prevent major headaches later.
Who Clears Title Issues—You or Escrow?
Generally:
- The escrow officer and title company work together to clear up issues like old loans, unpaid taxes, and known liens.
- But they don’t review everything for you. They won’t:
- Interpret HOA restrictions
- Flag whether a maintenance agreement is fair or enforceable
- Tell you if a shared driveway could lead to future neighbor disputes
It’s your job as the buyer to read the report (or get help) and ask the right questions.
How to Use ChatGPT to Review a Title Report
Nowadays, ChatGPT-like AI systems can be your friend when it comes to reading complicated legal documents—especially something like a title report.
While it’s important to remember that AI should not replace professional legal advice, it can be incredibly helpful for:
- Summarizing lengthy documents
- Flagging unusual items
- Translating legal jargon into plain English
You can upload the PDF directly to ChatGPT and ask questions—but make sure to give it some context first.
For example, say:
“This is a fourplex located at 123 Main Street. I am a potential buyer and trying to look for anything unusual or concerning in this prelim report.”
This kind of background helps the AI give you more useful insights.
Once you’ve provided context, here are some smart questions to ask:
- Can you summarize this title report for me in simple terms?
- Are there any existing liens, loans, or easements that could affect me as the new owner?
- Is this property part of an HOA? If yes, can you tell me what restrictions or fees are mentioned?
- Does this report show any recent transfers, quitclaims, or ownership issues?
- Are there any easements or agreements that involve shared driveways or maintenance obligations?
- What should I ask the escrow officer to clarify or clear before closing?
- Does anything in this report look unusual or concerning for a property like this?
Bottom Line
You don’t need to be a lawyer to understand your title report—but you do need to read it.
Whether you’re buying your first single-family home or adding to your multifamily portfolio, knowing how to review a title report will help you avoid future headaches and make better buying decisions.
Use this guide (and tools like ChatGPT) to gain confidence, clarity, and peace of mind—because what’s on title defines what you truly own.
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