Title Report

A title search is a process that is performed primarily to determine the answer to three questions:

•  Does the seller have a saleable interest in the property?
•  What kind of restrictions or allowances pertain to the use of the land?
     (real covenants, easements, or other servitudes)
•  Do any liens exist on the property that need to be paid off at closing?
     (mortgages, back taxes, mechanic's liens, or other assessments)

In Park City sales transactions, the seller of a property usually needs to buy title insurance to protect the buyer, which safeguards the buyer from potential title issues that may emerge after the sale, such as liens that were overlooked during the title search. The title insurance company provides a title report and then issues an insurance policy based on its findings. Preliminary title searches are typically performed after a property is listed for sale with a Park City Realtor. When a buyer and seller agree on the sale terms, a Title Report is almost always given to the Buyer as part of the Seller's Property Disclosure Items. This gives the buyer a chance to assess the property's title condition. The buyer should check for any "clouds" on the title.

A title search is also conducted when a property owner wants to mortgage or refinance their property, and the bank requires the owner to insure the transaction. In a property sale, the seller provides title insurance to protect the buyer, and the buyer is also required by the lender to purchase additional title insurance to cover the lender, known as a Lenders Policy.

Anyone can perform a title search, and documents related to land conveyances are publicly accessible. However, many people prefer to contact a title company or attorney for a thorough title search. For instance, a title report might also reveal easements or recorded legal rights to the property or parts of it. A previous owner may have legally granted a neighbor the right to share the driveway, or the city might have rights to strips of the property for installing power lines, communication lines, water pipes, or sewer pipes. Several online services offer title searches at relatively low cost, and their accuracy is comparable to what a title company or attorney provides; however, online services mainly rely on electronically available information and may sometimes have limitations.

For more specific information regarding Title Reports and Title Insurance, we recommend contacting the following Title Companies located here in Park City:

Coalition Title
Craig Rodman
Escrow Officer
(435) 649-4008
2200 Park Avenue, Bldg. C-100 
Park City, Utah 84060
craig@coalitiontitle.com
www.coalitiontitle.com

Highland Title
Danette “Dani” Loehr
Branch Manager / Escrow Officer
(800) 522-1071 
875 Iron Horse Drive 
Park City, Utah 84060
dani@highlandtitleutah.com 
www.highlandtitleutah.com

If any of the following items appear on your Preliminary Report, they will require immediate attention. A delay in closing may result without immediate attention. Please see the reverse side for definitions and actions needed to be taken.

1. Mechanic’s Lien: A statutory lien in favor of persons contributing labor, material, supplies, etc. to a work of improvement upon real property. A release must be recorded to be removed.

2. Notice of Action: A lis pendens. A proceeding in a court of justice by which one party prosecuted another for the enforcement or protection of a right.

3. Bankruptcy: A proceeding in the U.S. Bankruptcy Court wherein assets of a debtor (unable or unwilling to pay debts) are applied by an officer of the court in satisfaction of a creditor’s claim.

4. Uninsured Deed: A deed that has been recorded, but it is believed not to have been checked as to its validity. Additional information may be required before the title can be passed. Call your title officer to see what might be needed in each case.

5. Access: A landowner’s right to have ingress to and egress from the property to a public street. This property does not have legal access.

Preliminary Title Report Terms:

Estates: The word “estate” is used to express the degree, a fee quantity, nature, duration, or extent of an interest in land. A “Fee or Fee Simple” is the highest type of estate or interest an owner can have in land, freely transferable, inheritable, and whose owner is entitled to possession. (There are a number of other estates or interests in land that we can insure.)

Vesting: It is the ownership or title to an estate.

Legal Description: The description of the land covered by the preliminary report.

Exceptions: Matters which are expected from the property conveyed, such as oil and gas rights, or easements for specified purposes.

Taxes: The amount and status of past unpaid real estate taxes, if any, and current year’s taxes, paid or unpaid, or taxes which are a lien but not yet payable.

Bonds: Bonds or assessments, if any, levied at the inception of construction of improvements such as streets, gutters, sidewalks, etc.

CC&Rs: Covenants, conditions, and restrictions are limitations placed on the use and enjoyment of real property, such as limiting the property to a single-family or one-story dwelling.

Easements: An easement is a right of use in favor of others over land for specific purposes, such as public utilities, roads, or ingress and egress.

Deed of Trust: A deed of trust conveys title to particular land to a neutral third party (trustee) with limited powers (such as the power of sale) for the purpose of securing a loan (debt).

Assignment: An assignment of the beneficial interest under the deed of trust from one beneficiary to another.

Trustor: The borrower, owner, and grantor of the property conveyed in a deed of trust.

Beneficiary: The lender on a deed of trust is referred to as the beneficiary.

Trustee: Is a neutral third party in the deed of trust with limited powers. When the loan is paid in full, the trustee reconveys the property to the person or persons legally entitled to the land. If delinquent, the property will be conveyed pursuant to non-judicial foreclosure proceedings to the highest bidder at a public sale.

Abstract of Judgment: Imposes a lien on all real property owned or subsequently acquired by the debtor until satisfaction or expiration of the lien.

Statement of Information: This information statement is confidential and is used to enable the title company to eliminate title problems that may arise through the similarity of the name of the Seller or Buyer with the name of another person against whom there may be judgments, tax liens, or other matters affecting property ownership.