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Pass California

Transfer of Property, 8% of the examination

Preliminary report

An offer to issue a title policy on stated terms. It is expressly not an abstract of title.

The preliminary report creates no liability except as an offer, which surprises candidates who treat it as a guarantee. It is nonetheless the practical document in which liens, easements and CC&Rs surface during escrow.

See also

Title insuranceAn indemnity policy protecting against loss from defects in title.

See it in a question

One question from Transfer of Property, so the term lands in the context the exam uses it in.

Transfer of Property ยท 8%Escrow

What is the essential function of an escrow in a California transaction?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Transfer of PropertyThe smallest area. Title insurance, deeds, escrow, tax aspects, and transfer under court supervision.8%Practise Transfer of Property16 questions on this area, every option explained.Practice

Other terms in this area