CALIFORNIA TITLE COMPANY HAS A VESTED INTEREST IN THE CONSUMERS OF THE STATE OF CALIFORNIA.

California Consumer REPORT MAY 2016 ISSUE

The information contained herein is deemed to be reliable, but it is not guaranteed. California Title Company assumes no responsibility for errors or omissions. An independent policy-issuing agent of First American Title Insurance Company. Images may be subject to copyright. ©2016 California Title Company.

PROTECTION DURING THE “GAP” PERIOD The title company protects the buyer and lender from covered liens and other covered title defects that are recorded against the property in the “Gap” period: The period between the through date of the last court-house record search (the effective date of the title commitment) and the recording date of the new deed and/or mortgage (the effective date of the title policy).

PAYOFFS The title company insures that all existing mortgages and other liens are paid off after closing pursuant to written payoff instructions.

DEFECTS IN TITLEThe title company corrects many defects in title prior to closing the transaction, such as errors in the legal descriptions or names of the parties, and requires resolution of issues related to legal proceedings that might affect the property.

RECORDABLE DOCUMENTSThe title company insures that the new deed, mortgage and other documents intended for recording are in re-cordable form and then properly recorded.

AN ITEMIZED LISTING OF RECEIPTS AND DISBURSEMENTSThe title company provides, pursuant to federal law, an itemized settlement statement listing receipts and dis-bursements resulting from the transaction creating the interest being insured.

Insuring the “GAP”

In a typical real estate transaction, the title company or a policy issuing title agent issues a title policy to the buyer, seller and/or to the lender (if there is a mortgage) and, separate and apart from issuing the title policy, provides a closing service to facilitate the smooth transfer of the real es-tate. Sometimes a client will choose to close the transaction without the assistance of a title company or a policy-issuing title agent.

Keep in mind: If you do not close with a title company or a policy-issuing title agent, then you may not have in-surance for the “Gap” period!

So what does it mean to provide in-surance during the “Gap” period, and what are the benefits?

An independent policy-issuing agent of First American Title Insurance Company.

An in-depth title search is generally compromised of a thor-ough examination of public records. This can be difficult be-cause, depending on the jurisdiction, liens and judgments on a property may be filed a number of ways - by the name of the buyer, the name of the owner, the street address, lot number, etc. Many title companies today have created exhaustive and systematic methods for conducting these searches, resulting in large databases of consistently in-dexed data that facilitate faster and easier title searches. The “title plants,” or large stores of uniformly organized public data, help to complete title searches faster and help ensure accuracy.

TITLE SEARCH FINDINGSTitle searchers uncover more than simply liens and judg-ments, however. A thorough title search will include infor-mation about mortgages, street and sewer assessments, taxes and levies, and countless other issues that may taint an otherwise sound transaction.

For instance, a title searcher may examine a property and find no judgments or liens, but uncover special building restrictions of which the buyer was unaware. Or the title search may disclose previously-established easements, such as civil sewer or power. A title searcher may find that some part of the property encroaches on neighboring land, warning again possible ownership issues in the future.

NEW CONSTRUCTIONEven for a newly constructed property, a title search can be quite time consuming. While the actual structure in question may be new, the land on which it resides has likely trans-ferred hands countless times prior to the new construction, making ownership issues a possibility down the road. Addi-tionally, and in particular with respect to a newly built home, there is no guarantee that subcontractors and /or suppliers have not placed liens on the property for unpaid debts.

CURATIVE PROCESSThe legwork behind the issuance of a title insurance policy is rarely seen by the buyers or sellers of a property. Title professionals work to remove any existing “clouds” (judg-ments, easements, liens, etc.) prior to issuing a policy in or-der to decrease their financial risk to insure the title. When a cloud is difficult to clear or significant enough to question the wisdom of following through with the transaction, the title company will make this known to the prospective buyer.

RISK MITIGATIONThe data collected through a title search not only gives you the buyer peace of mind regarding the property they’re pur-chasing, but also helps reduce the risk of title problems arising in the future. This makes a title insurance policy a valuable investment towards protecting an even greater in-vestment - your home.

TheTitle Search ProcessWhen you receive the keys to your new home, you may already have an idea about the work that goes into a suc-cessful closing. However, few new homeowners recognize the efforts involved in searching and underwriting a title insurance policy - one part of your closing that can prove invaluable down the road.

An independent policy-issuing agent of First American Title Insurance Company.

We have knowledgeable, customer-focused professionals available to answer your title and settlement questions. Throughout the home buying and selling process, you may also encounter the following industry specialists who are able to professionally answer questions in their area of expertise.

Key ProfessionalsInvolved in a Real Estate Transaction

REALTOR®A REALTOR is a licensed real estate agent and a member of the National Association of REALTORS. They also belong to their state and local Association of REALTORS®. When looking for a REALTOR, the best place to start is by asking friends and neighbors for referrals. Another resource is the Find a REALTOR search feature on the National Association of REALTORS® (NAR) website.

REAL ESTATE AGENTA real estate agent is licensed by the state to represent parties in the transfer of property. Every REALTOR is a real estate agent, but not every real estate agent has the profes-sional designation of a REALTOR.

LISTING AGENTA listing agent or broker forms a legal relationship with the homeowner to sell the property.

BUYER’S AGENTA buyer’s agent or broker works with the buyer to locate a suitable property and negotiate a successful home pur-chase.

HOME INSPECTORA home inspector objectively and independently provides a comprehensive analysis of a home’s major systems and components.

LOAN OFFICERA loan officer is a representative of a bank or other financial institution. They help customers identify their borrowing op-tions and help them understand the terms of their loan.

APPRAISERAn appraiser works on behalf of a lender and provides a market analysis of the subject property. An appraiser’s find-ing is subjective and combined with market findings of sold properties within the surrounding neighborhood.

INSURANCE AGENTAn insurance agent helps a homebuyer determine the homeowner’s protection coverage needed and then finds the right insurance policy to fit those needs.

REAL ESTATE ATTORNEYA real estate attorney can give advice on all legal aspects of the real estate transaction. Additionally, they are able to draft and review contracts, help decide how to take title and assist with the closing process. In some states, real estate closings can only be conducted by attorneys.

ESCROW/CLOSING OFFICERAn escrow or closing officer is a non-biased third party who works with all participants to facilitate a successful closing of a real estate transaction. At closing, the closing officer will collect the purchase money funds from the buyer and lender as well as the settlement costs from each party. They disburse the funds according to the terms & conditions of escrow and record the necessary documents to transfer ownership of the property.

TITLE COMPANYOur thorough title searches, title clearance and title insur-ance policies help to produce clear property titles and en-able the efficient transfer of real estate.

Farmers Markets OngoingList of Farmers Markets in Orange Countywww.orangecounty.net

Rancho Days Fiesta May 1Celebrating the history of Saddleback Valley and explore the rich history of Orange County’s Ranchos and Native American tribes! http://ocparks.com/historic/heritage

OC MARATHON May 1Join thousands of other community-minded runners and walkers at the OC Marathon, beginning at Newport Beach Marriott Hotel & Spa just south of Santa Barbara Drive. Pledges to benefit eleven local children’s charities through Run for Orange County Kids (ROCK). www.ocmarathon.com

Annual Cinco de Mayo Fiesta May 12016 marks the 26th year of celebrating Mexican culture in our Spanish Village by the Sea. The Annual Cinco de Mayo Celebration showcases live entertainment featuring traditional Mariachi’s and Ballet Folklorico to Cumbias, Tex Mex, and Salsa dancers. Community groups will be serving up authentic Mexican food fare and other activities will include a juried Art Contest, Carnival Game booths and a vendor area.http://san-clemente.org

Annual UCLA Orange County Golf Classic May 6Make a difference in the life of an incoming UCLA student. Be a part of the Annual UCLA Orange County Golf Classic, A Fundraiser for Outstanding Students and the UCLA Fund. http://www.uclagolfclassic.com

Silverado Chili Cook-Off & Cinco de Mayo Festival May 7 The Silverado Modjeska Recreation & Park District (SMRPD) announces the 11th Annual Silverado Chili Cook-Off & Cinco de Mayo Festival. Taste the competition chili and vote for your favorite family recipe! Browse the arts & craft expo with local vendors, while enjoying the Cinco de Mayo entertainment lineup and Mexican folk heritage. http://smrpd.org

48th Annual Costa Mesa Speedway - Spring Classic May 7The most exciting, colorful and unpredictable live action racing event in the nation. Costa Mesa Speedway has put fans right on top of all the action from the comfort of Arena style grandstand seating since 1969. Suitable for the whole family.www.visittheoc.com

Soka University’s 15th Annual International Festival May 7The Festival, which is part of Orange County’s Imagination Celebration (www.sparkoc.com), features international food, over 900 dancers and musicians on three stages, art exhibitions, ceramic sales and demonstrations, games, inflatable rides and over 230 non-profit and business exhibitors. www.soka.edu/news_events/international-festival

MAY 2016Orange County Events Calendar

Mariachi Festival May 14The festival will include entertainment “Battle of the Mariachis” and authentic Mexican food. Mariachi performers will compete for cash prizes. www.missionsjc.com

Annual Muckenthaler Motorcar Festival May 14-15A One-of-a-kind Automotive Cultural Event. Featuring car rally, motor movies & Concours d’Elegance and Horseless Carriage Tour. Live performances in the outdoor amphitheater by The Pleasure Tones on Saturday and Janet Klein and Her Parlor Boys on Sunday. Proceeds benefit youth arts education and outreach programs.http://themuck.org/car-show

Greek Festival May 20-22Come and experience the sight, sounds and tastes of Greece. Join us for St. John the Baptist Greek Orthodox Church’s Annual OC Greek Fest – May 20-21-22, 2016. Along with authentic Greek foods and homemade Greek pastries, you will find traditional Greek dancing, an outdoor market place and a Kids Zone with carnival rides, games and other activities for the children. Check us out on Facebook and Twitter too!http://ocgreekfest.com

Tustin LobsterFest May 21The Tustin Lobsterfest is an annual fundraiser event that provides financial support for the programs and services sponsored by the Tustin / Santa Ana Rotary Club. All net proceeds from this event help pay for local Rotary programs throughout Tustin and Santa Ana. www.tustinlobsterfest.com

Doheny Blues Festival May 21-22The Annual Blues Festival is the true kick-off to summer with a weekend filled with music, lots of vendors and a International Food Court that features foods from around the world. Be sure you come down to Doheny State Beach and celebrate the beginning of summer with Orange County’s Favorite and most anticipated annual summer festival!www.dohenybluesfestival.com

Balboa Island ArtWalk May 22The Balboa Island Artwalk is the premier showcase for talented local artists and marks the start of Balboa Island’s summer season. This fine art show features artists exhibiting paintings, fine jewelry, blown glass, sculpture, and photography. Spectators will enjoy live music throughout the day.www.balboaislandartwalk.info

KSBR Birthday Bash Jazz Festival and Taste of the Bash May 29With more than 30 headliners playing with each other in a giant jazz jam, each Bash is a once-in-a-lifetime concert for both the artists and the audience. The music will never happen in exactly the same way again. The listeners know that the event is something special - it has sold out each of the past 11 years even before the full line up was announced. More than 25 Restaurants and Wineries will be at the festival. http://www.ksbr.net/