Are you staring at a preliminary title report and wondering what it actually means for your Tehachapi home purchase? You are not alone. Buying in Kern County often involves unique details like access easements, mineral rights, and special assessments that can show up in title work. In this guide, you will learn what a prelim is, how to read its key sections, and which local items deserve a closer look so you can move through escrow with confidence. Let’s dive in.
Preliminary title report basics
A preliminary title report is the title company’s written summary of what is recorded against a property and the conditions under which it will issue title insurance. It is not the policy itself. It is a commitment to issue a policy once listed requirements are met.
You usually receive the prelim shortly after escrow opens. It reflects the results of a search through public records as of a stated date and time on the report. Buyers, sellers, and lenders use the prelim to identify liens, easements, restrictions, and other recorded matters that must be handled before closing.
Keep in mind the prelim covers recorded items. It is not a legal opinion on unrecorded issues or the property’s physical condition. If you need clarity on boundaries, access, or possible unrecorded rights, you may consider a survey or specific title endorsements after talking with your title officer.
Read Schedule A and B
Most California prelims follow a standard format. Once you know where to look, you can spot the most important details quickly.
Schedule A: the snapshot
Schedule A is the summary. It shows:
- The type of policy to be issued and amount to be insured.
- The effective date and time of the title search.
- The legal description and APN. Confirm these match your contract and the physical property.
- The current vested owner and how title is held. Vesting affects who must sign and whether additional documents are required, especially with trusts, estates, or corporate sellers.
Schedule B, Part I: requirements to close
These are items the title company requires before it will issue the final policy. Common examples include:
- Payoff and reconveyance of existing deeds of trust or other liens.
- Releases for prior mortgages that were never cleared of record.
- Probate, trust, or corporate authority documents if the seller is not an individual.
- Proof of current property taxes and any needed tax certificates.
You, your agent, and escrow should monitor these items early. Some requirements take time, and delays can impact your closing date.
Schedule B, Part II: exceptions you take subject to
Exceptions are recorded matters the title policy will not cover unless removed or specially endorsed. You will commonly see:
- Easements and rights of way for utilities or access.
- CC&Rs for subdivisions or HOAs.
- Reservations in prior deeds, including mineral, oil, gas, or geothermal rights.
- Taxes or assessments, including special taxes such as Mello-Roos or Community Facilities District obligations.
- Judgments or mechanic’s liens that remain of record.
An exception does not always mean you should walk away. Many are typical, like standard utility easements. The key is understanding whether any exception interferes with your intended use, your lender’s requirements, or your long-term plans.
Additional pages: the detail behind the summary
Most prelims include a list of the specific recorded instruments with dates and document numbers. This is where you can see the exact deed, easement, or lien referenced in Schedule B. You may also see notes about parties in possession, leases, options, or rights of first refusal.
Tehachapi issues to watch
Tehachapi and greater Kern County have a few local items that appear more often in title work. Reviewing these early can save time and stress.
Mineral and subsurface rights
Kern County has an extensive history with oil, gas, and geothermal activity. It is not unusual to see mineral or subsurface rights reserved by a prior owner. If your prelim shows a reservation or an oil or gas lease, note it. Mineral reservations can allow others to access subsurface resources under certain conditions. Discuss any reservation with your title officer and consider legal advice if you have concerns.
Wind-energy and utility easements
The Tehachapi Pass is a major wind-energy corridor. Transmission lines and related utility easements are common in and around the area. Large recorded easements can affect use, views, or where you can build improvements. If a wide corridor or transmission easement appears in your exceptions, confirm how it impacts your plans.
Access and recorded right of way
Some rural or mountain-area parcels rely on recorded easements for legal access. Your prelim should show ingress and egress easements if access crosses neighboring property. Lack of recorded legal access is a serious red flag and can affect permits or financing. If access is unclear, ask about an access endorsement or a survey to verify location.
Special taxes and assessments
California properties can carry special district obligations, including Mello-Roos or other community facilities district assessments. These typically appear in Schedule B. Confirm current taxes and whether any special assessments apply, and ask about potential supplemental tax bills after closing if the assessed value changes.
Water, sewer, and septic records
Some properties connect to local water districts or mutual water companies. In other areas, homes use wells and septic systems. Recorded agreements or bylaws may appear in the prelim and can affect assessments or service obligations. If you are buying on acreage, confirm how water and sewer are handled and whether related documents appear in the exceptions.
Historic covenants or downtown overlays
Properties in Downtown Tehachapi may be subject to historic or design-related restrictions. Some items may be recorded, while others may live with the city or local planning department. If you plan renovations, review both the prelim and any municipal designations early in your due diligence.
Buyer checklist for your prelim
Use this simple flow to review your report with confidence.
Verify the basics first
- Confirm the legal description and APN match your contract and the property you toured.
- Confirm the vested owner names match the seller on your purchase agreement.
Scan Schedule B, item by item
- Identify recorded liens, judgments, or tax issues that must be cleared.
- Note any mineral reservations, wind-energy or utility easements, and access easements.
Check the requirements to close
- Make sure required payoffs, reconveyances, affidavits, and authority documents are in progress.
- If the seller is a trust, estate, or company, confirm the title company has the right documents to proceed.
Confirm tax and assessment status
- Ask escrow for current tax certificates and whether special taxes or assessments apply.
- Ask about supplemental taxes that may be issued after closing.
Consider added protection
- If boundaries or access are unclear, discuss a licensed land survey.
- Ask the title officer about endorsements such as ALTA 9, access or location endorsements, and any available mineral-rights coverage.
Communicate and calendar
- Prelims arrive early in escrow. Some items take time to clear. Track deadlines so title issues do not delay closing.
Negotiation and timing tips
If a problem surfaces, you have options. You can ask the seller to clear defects before closing, such as paying off a lien or recording a required release. If something will be resolved after closing, you can request an escrow holdback to cover the risk until the item is cleared. Depending on the issue, you may seek a price adjustment or request broader title insurance coverage.
If a major concern appears, like lack of legal access or a significant mineral reservation, use your title contingency to investigate. If it is unacceptable for your goals, you can cancel within contingency timelines. Keep your agent and escrow looped in so requests and approvals are documented.
Who pays for title and when
A lender’s policy is typically required by your lender. An owner’s policy protects your equity and is strongly recommended for buyers. Who pays for the owner’s policy varies by market and even by transaction. In Tehachapi, confirm local custom with your agent or escrow officer and negotiate accordingly in your purchase agreement.
The bottom line for Tehachapi buyers
A clear, accurate prelim helps you avoid surprises and protects your long-term plans for the property. Focus on the basics in Schedule A, work through the requirements in Schedule B Part I, and study the exceptions in Part II with local context in mind. In Tehachapi, that means paying special attention to access, utility and wind-energy easements, mineral and subsurface reservations, and any special tax obligations.
If you want a steady, local guide through the details, reach out to Theresa Mann for hands-on help reviewing your prelim and coordinating next steps with title and escrow.
FAQs
Who orders the preliminary title report in a California escrow?
- Typically the escrow holder or the buyer’s lender requests the report from a title company, and both buyer and seller receive copies.
How long is a preliminary title report valid in Tehachapi?
- It reflects conditions as of its effective date and time, and the title company usually updates the search near closing to capture new recordings.
Are easements in Schedule B always a problem for buyers?
- Not always; many easements are routine, but you should confirm whether any easement interferes with your intended use or lender requirements.
What if my prelim shows an old judgment or unpaid lien?
- Title companies generally require payoff or release before issuing a clear policy, so work with escrow and the title officer on the required steps.
Should I get an owner’s title policy if my lender already gets one?
- Yes; a lender’s policy protects the lender, while an owner’s policy protects your equity from covered title defects after closing.
Can unrecorded issues affect my title even if the prelim is clean?
- Yes; unrecorded easements or boundary concerns may not appear, so consider a survey or specific endorsements and consult professionals if you suspect issues.
