A recorded deed still needs a valid transfer
A deed requires a competent grantor, an identifiable grantee and property, operative transfer language, the required signature, and effective delivery and acceptance. Delivery turns on the grantor's intent that the deed operate as a transfer, not merely where the paper is stored. Recording supports notice and priority but does not repair forgery or lack of authority.
A California grant deed carries the limited implied covenants in Civil Code section 1113 unless restrained by express terms. It is not an unlimited warranty against every title problem from all prior owners. A quitclaim transfers whatever interest the grantor has, without those grant-deed covenants; it does not prove that an interest exists.
Escrow follows instructions, not one party's preference
An escrow holder is a neutral stakeholder carrying out the parties' lawful instructions and applicable duties. Receiving a deposit does not authorize the holder to rewrite disputed terms or choose a winner in a contract dispute.
Read who must deliver documents, satisfy conditions, and authorize disbursements. Conflicting instructions may prevent closing until resolved. A scheduled closing date is not proof that every condition has been met, and an escrow officer is not a substitute for legal advice about a contested right.
Read what the title insurer actually offers to cover
A preliminary report is an offer to issue a title policy subject to stated exceptions and other incorporated matters. Insurance Code section 12340.11 distinguishes it from an abstract of title. Review the report's vesting, requirements, and exceptions before assuming a claimed interest is covered.
An owner's policy protects the insured ownership interest under its terms. A lender's policy protects the insured lender's security interest, not the buyer in the same way. Coverage differs by policy and endorsement. Neither policy is a general warranty of physical condition, and issuing a policy does not extinguish an excepted easement.
Apply it, then change one fact
A preliminary report lists a recorded access easement as an exception. Does buying the title policy automatically remove the easement?
Reasoning: No. An exception identifies a matter excluded from coverage as stated. The easement is not released simply because a policy is issued.
Change one fact: If a recorded lien must be paid and released as a closing requirement, escrow must satisfy that requirement under the instructions. A requirement to clear a lien is different from accepting an easement exception.
Keep these distinctions clear
- Deed
- Transfer instrument; check authority, delivery, and the interest conveyed.
- Escrow
- Conditional closing under lawful instructions.
- Title policy
- Contractual coverage of specified title risks, with exceptions.
Check the controlling rule
Current statutes and regulations control over older reference-book descriptions. Read the cited section for transaction-specific conditions and exceptions.
Frequently asked questions
Does recording make a forged deed valid?
No. Recording does not cure forgery, missing authority, or another defect in the underlying transfer.
Does the lender's title policy also protect the buyer as an owner?
Not in the same way. The lender and owner have different insured interests. Read the actual policy and any endorsements rather than assuming identical coverage.