A buyer in a California transaction receives the preliminary title report and notices that there is an easement for a utility company across the back of the property. The buyer asks the escrow officer whether this easement can be removed before closing. The escrow officer should explain that:
Correct Answer
D) Utility easements are typically permanent and will remain on the title, appearing as an exception in the title insurance policy
Utility easements are typically permanent rights that run with the land and cannot be removed by the property owner or escrow company. They will appear as an exception on the title insurance policy, meaning the buyer takes the property subject to the easement. The buyer should review the easement to understand how it affects the property before deciding whether to proceed with the purchase.
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Related Topics & Key Terms
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Related Concepts
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
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Previous Question
A California escrow involves a 1031 exchange buyer whose qualified intermediary (QI) can only wire exchange funds on the actual closing date, but the buyer's lender requires loan funds to be received 24 hours before recording. The seller also has an existing loan payoff that must be wired same-day. Which approach correctly resolves this funding timeline conflict while complying with California escrow law?
Next Question
A California buyer's lender requires an impound account for property taxes and homeowner's insurance as a condition of the loan. Which of the following most accurately describes what the buyer will owe into the impound account at closing?