ESCROW AND TITLE

Escrow is a neutral depository for documents and/or funds to be exchanged on performance of a condition or conditions. The escrow becomes the trustee for the money and papers until such time as they are distributed according to the escrow instructions.

Chain of Title is a history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far as records are available.

Title Insurance - CLTA or California Land Title Policy; Insurance that covers the new owner for defects of records and forgery. ALTA or American Land Title Policy (Lender's Policy) of insurance that covers the lender additionally for zoning violations, encroachments and all material facts affecting the title of the property.

Preliminary Title Report is an opinion of the title status.

Cloud on the Title is any condition revealed by a title search which affects the title to the property.