California Partition Law Blog
Exceptions in a title report, also called a preliminary title report, make a potential buyer aware of issues with the property. Exceptions are important as they may limit what title insurance a buyer is eligible for and may prevent the sale of property altogether.
What is a title report?
A title report is used when conducting a sale or purchase of real estate to help a buyer make an informed decision. A title report is provided by a title insurance company after escrow is opened. It is a document that includes details about the property’s owners, recorded liens against the property, other encumbrances or debts, and conditions. (Ins. Code. § 12340.11.)
When it comes to real estate transactions, ensuring a clean and clear title is essential. However, what happens if a property is sold without a perfect title, only for the seller to acquire the missing rights or interests later? This scenario is where the After Acquired Title Doctrine comes into play. In this blog, we’ll discuss what this doctrine entails, its implications for buyers and sellers, and how it impacts real estate transactions.
If you’re venturing into a real estate transaction and are daunted by the contracts, you’re certainly not alone. The jargon and intricate legal parlance can often make these contracts seem more complex than they actually are. Yet, the good news is that, armed with some guidance and understanding, these contracts become much less intimidating. Our friends at 
Frequently, when homeowners are dealing with financial difficulties, equity purchasers may induce homeowners to sell their homes for a fraction of the price. An “equity purchaser” is anyone who acquires title to any residence in foreclosure, with some exceptions. (Cal. Civ. Code § 1695.1(a)). The California legislature believed that homeowners were losing their homes to foreclosure due to “fraud, deception, and unfair dealing by home equity purchasers.” (Cal. Civ. Code § 1695). To combat these instances of deceit, the Legislature implemented the Home Equity Sales Contract Act, found in Title 5 of the California Code of Civil Procedure, Chapter 2.5, sections 1695.1-1695.16.
The California Partition Law begins at Code of Civil Procedure section 872.010 and ends at Code of Civil Procedure section 874.323. Section 872.220 requires that the plaintiff state the existence and location of a title report if they have procured one. A title report includes a preliminary report, guarantee, binder, or policy of title insurance. (CCP § 872.010 subd. (e).)