Dear Forms Committee: Preliminary Title Report
There should not be an automatic extension for every supplemental Preliminary Title Report. Often, a supplemental Preliminary Title Report may be issued only to correct the spelling of a name or to see if anything has changed, which should not extend the title contingency period. Instead, the extension only applies when new material information not previously known is added to the title report. “Material Information” is information that the buyer would want to know in deciding whether to proceed with the purchase on the terms of the Sale Agreement. Some examples of material information would be whether an easement necessary to reach the property is still in place, whether the CC&Rs for the neighborhood have changed so that they don’t allow the buyer to keep pets or recreational vehicles at the property, or whether a lawsuit has been initiated that may impact the property.
Always check with your principal broker or legal counsel to ensure that you are following any policy requirements of your brokerage.
All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.