Elena is purchasing a home in Long Beach, California. During the title search, the title company discovers that a previous owner died intestate (without a will) 10 years ago, and the property was transferred through a probate court proceeding. The heir who received the property then sold it to the current seller via grant deed. Elena is concerned about the strength of her title. Her agent should advise her that:
Correct Answer
B) The title should be insurable because the probate court order is a legal transfer method, and title insurance will cover any defects in the probate proceedings
Probate court transfers are a recognized legal method of conveying property in California. When a property passes through probate, the court order confirming the sale or distribution serves as the basis for the transfer. Title insurance companies routinely insure properties that have passed through probate proceedings. The title insurance policy would protect Elena against any defects that may have occurred during the probate process.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
Adverse possession is a legal doctrine that allows a person to claim ownership of land by occupying it continuously for a statutory period under specific conditions, without the true owner's permission.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
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- → Under California law, what is the consequence when a property buyer fails to file the Preliminary Change of Ownership Report (PCOR) at the time the deed is recorded?
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Previous Question
An investor in California holds title to a commercial property through an LLC. The investor wants to sell the property. The buyer's title company issues a preliminary title report. In reviewing the report, the buyer notices that a deed of trust from a prior owner was never formally reconveyed after the underlying loan was paid off. What document must be obtained to clear this title issue?
Next Question
A property owner in Ventura County, California, signs a grant deed transferring his home to his friend but places the deed in his safe deposit box with instructions to deliver it upon his death. The owner dies two years later, and the deed is found. Under California law, is this a valid transfer?
