1. · /
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3. 04. Quick Reference Page
TABLE
of contents
05. Fast Facts for Buyers
06. Life of an Escrow
Search Properties Like an Agent
FREE! Go to:
www.PauIMirador.Listingbook.com
07. Benefits from a Professional Realtor Short Sale - Foreclosure - Bank Owned
08. Terms You Should Know
10. Loans
12. Mortgage Payment Charts
13. Ways to Hold Title
14. Selecting a Home
15. Rent vs. Buy
16. The Escrow Process -- Explanation of Title Commitment
18. Understanding Title Insurance
19. Compare Our Eagle Policy
20. Who Pays Closing Costs
21. The Importance of Title Protection - Why Lenders Require Title Insurance
22. California's Good Funds Law
23. Closing Your Escrow - After the Closing - Property Tax Dates
24. Planning Your Move
25. Your Notes

4. YOUR ESCROW NUMBER _
YOUR NEW ADDRESS quick reference
CITY/STATEIZIP
Complete the following information as it becomes available. Utility companie.s may ask for your Escrow number and the name of your Title company.
IMPORTANT Do not cancel your home insurance or disconnect utilities prior to the close of escrow.
Name _ Phone L---.J
Cell L---.J
Company _ Pager L---.J
Address _ Fax L---.J
City/State/Zip _ Email
Email _
I
Escrow Officer
~ Escrow Assistant _ Email _
Address _ Phone L---.J _
City/State/Zip _ Fax L---.J _
----------------------
~-~-------·-----i--
Agent Policy# STOP START
DATE DATE
~ Phone L---.J
· New Agent Policy #
Phone L-J
,;
New Cable Company __ --"'"_~_~ ___':__,;,---"------'=----r------_
New Electric Company _
• Long Distance Carrier~~~-~-------~-_"""--------~~,.,.,..".~------_-
Your New Phone~----"~~ __ _"__~ ~ New Fax L---.J _
CeIIPhone ~ __ ~_~ - -------------
• Internet Service ~_-;-.,...". __;:_-----------~----~---·I
New Water Company _
Lawn Service ~~ ~~-~------------_--- __"'__
,0-' '·""·'1
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FirstAmerican Title

5. THE ADVANTAGES
f OF WORKING WITH ONLY ONE REALTOR® INCLUDE:
> FOR BUYERS The Realtor becomes familiar with your family's needs.
> REALTOR®. You develop better rapport and communication when
A Realtor® is a licensed real estate agent and a working towards your goal with one Realtor.
member of the National Association of Realtors®,
a real estate trade association.
Realtors also belong to their state .and local Boards
The Realtor is more committed to you because
of Realtors. They have a wealth of resources at their
disposal, including the Multiple Listing Service and you return that commitment.
continuing education. All association members .
agree to abide by a 17-article Code of Ethics and
strive for the height of professionalism.
You avoid any uncomfortable situation arising
> REAL ESTATEAGENT. from agent conflict.
A real estate agent is licensed by the state to repre-
sent parties in the transfer of property. Every Realtor
is a real estate agent, but not every real estate agent
is a professional Realtor.
> LISTING AGENT.
A listing agent forms q legal relationship with the
homeowner to sell the-property and places the
property in the Multiple Listing Service. "'
> BUYER'S AGEN:r'.
fA Buyer's agent Of Buyer's broker is an agent hired
by the Buyer. Generally, the Buyer's a.gent is paid
from the commission fee agreed to by the SeUer.
Excerpt from the
Preamble to the Realtor's Code of Ethics:
> MULTIPLE LISTING SERVICE (MLS).
The MLS is a database of properties listed for sale The term Realtor has come to connote
by Realtors who are members of the local Board of competency fairness, and high integrity
Realtors. Information on an MLS property is available resulting from adherence
to thousands of Realtors.
to a lofty ideal of moral conduct
in business relations.
> COMMITMENT. IS A TWO-WAY STREET.
Your Realtor will make a commitment to spend valu- • • •
able hours finding the rfght home for you: research- No inducement of profit and no instruction from clients ever
ing listings, previewing properties, visiting homes can justify departure from this ideal.
with you, and negotiating your contract. Honor that
commitment by staying with the Realtor you've
selected unti] you purchase your home. Be sure your
• • •
In the interpretation of this obligation,
Realtor accompanies you Oil your first visit to all new
Realtors can take no safer guide
homes and open houses too.
than that which has been handed
down through the centuries,
embodied in the Golden Rule:
"Whatsoever ye would that others
should do to you, do ye even so to them. "
I First American 'TItle D

6. i$"
BUYER ~ ..•.. SELLER
SELECT A REALTOR
""" THE LIFE OFAN ~ SELECT A REALTOR
-.. ~
IlL
= ---
ESCROW
BUYER
PRE-APPROVED BY LENDER
IF NEW LOAN NEEDED
I"~ SELLER
PREPARES HOUSE FOR
SHOWING & SELLING
"c
l~
- _., ._.-
,ii: i;;
.-- - ...
BUYER
' 'I
SELECTS HOME AND
~iiiii SUBMITS CONTRACT WITH LOAN 'i
BUYER
, STATUS REPORT (LSR) SELLER
...•.. REVIEWS & ACCEPTS CONTRACT
VIEW HOMES WITH REALTOR®
~ FROM BUYER
~
..
'!I, "'lI ill:.
'.. " ...
' II
INSPECTION REPORTS SENT ....,,-
VARIOUS INSPECTIONS 1 ESCROW OPENED AT
First American
III
TO APPLICABLE PARTY & REVIEWED. ORDERED
NOTIFICATION SENT "- & TITLE COMMITMENT ORDERED
.•.
..~ .--- .. - ~ J
' .i
i" :;r,
...•.. BUYER
TITLE COMMITMENT RECEIVED APPRAISAL
ADVISES First American
& APPROVED BY BUYER ORDERED BY & COMPLETED FOR LENDER ~
OF HOME INSURANCE COMPANY
.' ,,'O, "'- -
' ,
LOAN DOCUMENTS PREPARED BY
.~
CLOSING DOCUMENTS ~ BUYER
COMPILED BY ...••.. LENDER RECEIVES FINAL LOAN
First American & SENT TO ESCROW APPROVAL FROM LENDER
ill ] 111. .. ,,,,,,,,,,t,!l!!
"
' II
SEPARATE APPOINTMENTS SET: I:::, p;.-, LOAN DOCUMENTS
RETURNED 11:
BUYER & SELLER BUYER "-
DEPOSITS REQUIRED FUNDS
~ TO LENDER FOR REVIEW ",
SIGN DOCUMENTS
,~..
f i: .- -
,
II
DOCUMENTS RECORDED
~ LENDER "FUNDS LOAN"
F!ii
First American
ENSURES ALL
"
(SENDS FUNDS TO ESCROW)
AND ESCROW CLOSED
"- f!, CONTRACT CONDITIONS MET
... .. •• ... - .
~ ~
, =
"
AFTER RECORDING 1;: FINAL DOCUMENTS
CONFIRMED ~: ...•.
n
BUYER
~~,
SENT TO
First American ~
RECEIVES KEYS FROM REALTOR® INTERESTED PARTIES
...
DISBURSES FUNDS
J ,
, J

7. [ COUNT ON ]
First American Title
Buying a home is a challenging project,
and there are many ways a professional can help. [ CO U NT 0 NUS ] for service
Here are some of the many ways you may benefit
Your Realtor recommends First American with confidence,
from working with a Realtor:
knowing each of our branches is staffed by professionals
dedicated to closing your escrow.
Each office can provide comprehensive title and settlement
• • ••
The Realtor who helps you buy a home is traditionally paid by the Seller.
services for any real estate transaction associated with
a purchase, construction, refinance or equity loan.
Backed by the assurance of First American Title, each transaction
will be expertly completed in accordance with the state-specific
•• •
Your Realtor has thousands of homes to choose from through the
underwriting standards and regulatory requirements.
Our offices and agents utilize fully-trained staff to provide you
Multiple Listing Service (MlS), so you're mora likely to find the home with the most comprehensive insurance coverage and
that's just right for you and find it quicker. In fact, a majority of the professional service available in the industry today.
homes for sale are listed by Realtors and aren't available to YOt.!
..
unless you are working with a Realtor.
[COUNT ON US] forstability
: First American Title is the principal subsidiary of
Unfortunately, it's true. Some transactions fall apart before dosing. The First American Corporation in Santa Ana, California,
An experienced Realtor may be able to resolve problems and see your the largest supplier of real estate related services in the nation.
transaction through <0 a successful closing. We're backed by assets totaling over $3 billion
and reserves of more than $300 million.
First American is-the leading title insurer in the state,
with roots dating back to 1892.
New home subdivisions will welcome you and your Realtor. If you're We've served California families for generations.
interested in buying a new home, take your a@entwith you on your first
visit to each subdivision. Your professional Realtor is an important
source of information who can supply background on the builder, nearby
subdivisions, and the local community. [ COU NT ON US] for convenience
First American has a direct office or an agent office located near you.
We offer more convenient locations-over 150 offices throughout
You use a professional for your legal, financial and health needs. Why California. First American has an extensive network of offices
gamble on what may be your biggest investment without a professional and agents throughout the United States, the Bahama Islands,
at your side? Canada, Mexico, Puerto Rico, the U.S. Virgin Islands
Bermuda, Guam, and the United Kingdom.
Our headquarters is located at
2 First American Way, Santa Ana, CA 92707.
If you consider a "For gale By Owner," take your Realtor along to help
negGtiate the contract, The owner may not only agree to your terms, but
also agree to Ray the agent's commission.
[COUNT ON US] for all of your needs
You will have more protection from legal and financial liability, especially First American offers more than title insurance and escrow services:
as real estate transactions become more complicated. Property research· Account servicing
Foreclosures • 1031 tax-deferred exchanges
Hazard Insurance • Home Warranty
Your experienced Realtor will' negotiate and prepare the purchase Homeowner's Insurance • Trust and Investment
contract for you and assist you throughout the escrow process. Credit Services • AppraisalsNaluations
Analytics & Modeling • Technology Solutions
I First American Title D

8. AMORTIZED LOAN. A loan that is paid off-both interest and principal-by regular payments that are equal or nearly equal.
AMENDMENTS. A change-either to alter, add to, or correct-part of an agreement without changing the principal idea or
essence.
APPRAISAL. An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
ASSUMPTION. Taking over another person's financial obligation; taking title to a property with the Buyer assuming liability for
paying an existing note secured by a deed of trust against the property.
BENEFICIARY. The recipient of benefits, often from a deed of trust; usually the lender.
CLOSE OF ESCROW. The date the documents are recorded and title passes from Seller to Buyer. On this date, the Buyer
becomes the legal owner, and title insurance becomes effective.
CLOUD ON TITLE. A claim, encumbrance, or condition that impairs the title to real property until disproved or eliminated
through such means as a quitclaim deed or a quiet title legal action.
COMPARABLE SALES. Salesthat have similar characteristics as the subject property, used for analysis in the appraisal.
Commonly called "cornps."
CONVEYANCE. An instrument in writing, such as a deed or trust deed, used to transfer (convey) title to property from one
person to another.
a I First American Title

9. TERMS YOU SHOULD KNOW
DEED OF TRUST. An instrument used in many states in place of a mortgage.
DEED RESTRICTIONS. Limitations in the deed to a property that dictate certain uses that mayor may not be made of
the property.
EARNEST MONEY DEPOSIT. Down payment made by a purchaser of real estate as evidence of good faith; a deposit or
partial payment.
EASEM ENT. A right, privilege or interest limited to a specific purpose that one party has in the land of another.
HAZARD INSURANCE. Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon
the policy. Buyer often adds liability insurance and extended-coverage for personal property.
HOMESTEAD EXEMPTION. Automatic in California, it allows any resident of California, 18 years of age or older, to exempt from
attachment, execution or forced sale $100,000 of equity in a single dwelling unit. Exceptions include (1) process and sale of a
consensual lien, i.e. where a deed of trust or equity loan is foreclosed; (2) a forced sale resulting from a mechanic's lien, and (3)
any equity beyond the $100,000. (You should consult an attorney to determine if this exemption offers you protection in the event
of an attachment, execution or forced sale.)
IMPOUNDS. A trust type of account established by lenders for the accumulation of borrower's funds to meet periodic payments
of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.
LEGAL DESCRIPTION. A description of land recognized by law, based on government surveys, spelling out the exact boundaries
of the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
LIEN. A form of encumbrance that usually makes a specific property the security for the payment of a debt or discharge of an
obligation. For example, judgments, taxes, mortgages, deeds of trust.
MORTGAGE. The instrument by which real property is pledged as security for repayment of a loan.
PIT!. A payment that combines Principal, Interest, Taxes and Insurance.
POWER OF ATTORNEY. A written instrument whereby a principal gives authority to an agent. The agent acting under such a
grant is sometimes called an "Attorney-in-Fact."
PURCHASE AGREEMENT. The purchase contract between the Buyer and Seller. It is usually completed by the real estate
agent and signed by the Buyer and Seller.
QUITCLAIM DEED. A deed operating as a release, intending to pass any title, interest, or claim which the grantor may have
in the property, but not containing any warranty of a valid interest or title by the grantor.
RECORDING. Filing documents affecting real property with the County Recorder as a matter of public record.
WARRANTY DEED. A real estate oriented document used to convey fee title to real property from the grantor (usually the Seller)
to the grantee (usually the Buyer).
~ I First American Title D

10. OBTAINING
A NEW LOAN
WHEN AND WHERE TO APPLY FOR A LOAN
There are many sources for home loans including banks, credit unions,
mortgage companies, and mortgage brokers. Your Realtor® may give
you several names of lenders who have proven reliable in their previous
~
transactions. Apply for your loan as soon as possible. In fact, it's probably
a good idea to know what you can afford before you begin looking for I
your new home. It can give you more bargaining power when negotiating
with a Seller, especially in today's market. A lender can prequalify you for
a certain price range and help you avoid disappointment later.
VERIFICATION REQUESTS
Your lender will mail out verification requests and order an appraisal on the
property you are buying. If your lender asks for additional items, please com-
ply promptly with those requests to avoid delaying loan approval.
WHAT IS HAZARD (OR FIRE) INSURANCE?
Hazard insurance covers the dwelling itself and is required by the lender to
protect their "risk" in your home. Your Lender or Realtor will explain the
necessary hazard insurance coverage to you. If you are buying a condominium,
a master policy already exists which includes your unit-but it does not cover
your personal belongings.
CONTACT YOUR INSURANCE AGENT EARLY IN THE PROCESS
Hazard Insurance coverage must be provided so the lender can release loan
funds to First American. Hazard Insurance is one of the items frequently
postponed until the last minute, and this can result in delaying the
closing for a day or more. Order your insurance as soon as your
loan is approved; then furnish your escrow officer with the agent's name
and phone number.
When you talk with your insurance agent, be sure to ask about additional
coverage in a homeowner's policy to insure your personal belongings and to
protect against liability for such events as injuries to visitors.
WHAT HAPPENS AFTER LOAN APPROVAL?
After loan approval and just prior to your planned Closing date, the lender
will send loan documents to First American Title, and your escrow officer
will prepare an estimated settlement statement. This statement indicates
what funds go where, and at this time your escrow officer can tell you how
much money you need to bring to the closing appointment. Be aware
that this amount may be higher or lower than previously estimated :!
due to changes in such items as prepaid interest, prorated fees, courier
fees, and impound accounts.
-' L
I First American TItle

11. DO NOT CHA GE JOBS. Ajob change may result in your
WHAT TO AV01D
DURING THE LOAN PROCESS
loan being denied, particularly if you are taking a lower
paying position or moving into a different field. Don't think
DON'T PAY OFF EXISTING ACCOUNTS
"
UNLESS THE LENDER REQUESTS IT.
you're safe because you've received approval earlier in the
If your Loan Officer advises you to payoff certain bills in order to quality for the
process, as the lender may call your employer to re-verify
loan, follow that advice. Otherwise, leave your accounts as they are until your
your employment just prior to funding the loan. 0 escrow closes. 0
AVOID SWITCHING BANKS OR MOVING YOUR MONEY TO ANOTHER INSTITUTION. DON'T MAKE ANY LARGE PU~CHASES. A major
After the lender has verified your funds at one or more institutions, the money should purchase that requires a withdrawal from your verified
remain there until needed for the purchase. 0 funds or increases your debt can result in your not
qualifying for the loan. A lender may check your
credit or re-verify funds at the last minute, so avoid
purchases that could impact your loan approval. 0
types of loans
ADJUSTABLE RATE LOAN. Adjustable or variable rate refers to the fluctuating interest rate you'll pay over the life of the loan. The rate
is adjusted periodically to coincide with changes in the index on which the rate is based. The minimum and maximum amounts of
adjustment, as well as the frequency of adjustment are specified in the loan terms. An adjustable rate mortgage may allow you to qualify
for a higher loan amount but maximums, caps and time frames should be considered before deciding on this type of loan.
ASSUMABLE LOAN. A true assumable loan is rare todayl This loan is used to enable a buyer to pay the seller for the equity in the home
and take over the payments without meeting any requirements. Assumables these days generally require standard income, credit and
funds verification by the lender before the loan can be transferred to the buyer.
BALLOON PAYMENT LOAN. A balloon loan is amortized over a long period but the balance is due and payable much sooner, such as
amortized over 30 years but due in five years. The loan also may be extendable or it may roll into a different type. This could be an
option if you expect to refinance before the loan is due or you plan to sell before that date. Discuss this option carefully with your Loan
Officer before accepting this type of loan.
BUY-DOWN LOAN. If you have cash to spare, you can pay a portion of the interest up-front to reduce your monthly payments.
COMMUNITY HOMEBUYER'S PROGRAM. This program is designed to assist first-time buyers by offering a fixed rate and a low
down payment, such as 3 to 5% down. The program doesn't require cash reserves, and qualifying ratios are more lenient; however, the
buyer's income must fall within a certain range and a training course may be necessary if required by the program. Ask your Loan Officer
if this program is available in your community and whether or not you might qualify.
CONVENTIONAL LOAN. This simply describes a loan that is not obtained under any government-insured program, secured by
investors. It could be any type: fixed rate, adjustable, balloon, etc.
FHA LOAN. This program is beneficial for buyers who don't have large down payments. The loan is insured by the Federal Housing
Administration under and Housing Urban Development (HUD) and offers easier qualifying with less cash needed up-front but the
condition of the property is strictly regulated. The Seller will pay a portion of the closing costs that would typically be paid by the buyer
in a conventional loan program.
FIXED RATE LOAN. This loan has one interest rate that is constant throughout the loan.
GRADUATED PAYMENTS. This is a mortgage that has lower payments in the beginning that increase a pre-determined amount (not
based on current rate fluctuations as with an adjustable) usually on an annual schedule for a specific number of years.
NO-QUALIFYING. A no-qualifying loan may be an option for those who can afford a larger down payment, generally 25% to 30% or
more. Since the risk for the lender is virtually eliminated, the borrower doesn't have to meet normal lender requirements such as proof
of income.
VA LOAN. People who have served in the US armed forces can apply for a VA loan which covers up to 100% of the purchase price and
requires little or no down payment. The seller pays much of the closing costs but those fees are added to the sales price of the home.
I First American Title _

12. MORTGAGE PAYMENT PRINCIPAL & INTEREST 30- YEAR LOAN
INTEREST RATE
Loan
Amount 5.00% 5.5% 1--6.00% ~ f- 6.5% ., ~ 7.00%~ ~ 7.5% J }- ~
8.00% ~ 8.5% J ~.OO% ~
$300,000 $1,610.46 $1,703.37 $1,79865 $1,896.20 $1,995.91 $2,097.64 $2,201.29 $2,306.74 $2,413.87
$350,000 $1,878.88 $1,987.26 $2,098.431 $2,212.24 I $2,328.56 r $2,447.25 1$2,568.18 $2,691.20 $2,816.18
c
$400,000 $2,147.29 $2,271.16 $2,398.20 $2,528.37 $2,661.21 $2,79686 $2,93506 $3,075.65 $3,218.49
$450,000 $2,415.70 1 $2,555.05 I1 $2,697.981 I $2,844.31 I 1$2,993.8611 $3,146.47 [ [$3,301941 1$3,460.11 1$3,620.80 j
$500,000 $2,684.11 $2,838.95 $2,997.75 $3,160.34 $3,326.51 $3,496.07 $3,668.82 $3,844.57 $4,023.11
$550,000 $2,952.52 $3,122.84 1$3,29753 1I $3,476.37 I $3,659.16 $3,845.68 $4,035.71 1$4,229.02 r $4,425.42 1
$600,000 $3,220.93 $3,406.73 $3,597.30 $3,792.41 $3,991.81 $4,195.29 $4,402.59 $4,613.48 $4,827.74
$650,000 $3,489.34 !1 $3,690.63 I 1$3,897.08 I1 $4,108.44 ] I $4,324.47 I 1$4,544.89 1 1$4,769.47 1$4,99794 1$5,230051
$700,000 $3,757.75 $3,974.52 ' $4,196.85 $4,424.48 $4,657.12 $4,894.50 $5,136.35 $5,382.39 $5,632.36
$750,000 $4,026.161 I$4,258.42 1 !$4,496.63 $4,740.51 1 $4,989.77 r $5,244.11 1$5,503.23 1 1$5,766.85 1$6,034.671
$800,000 $4,294.57 $4,542.31 $4,796.40 $5,056.54 $5,322.42 $5,593.72 $5,870.12 $6,151.31 $6,436.98
$850,000 $4,562.98 I [ $4,826.21 $5,096.18 $5,372.58 1$5,655.07 1$5,943.32 1$6,23700 1$6,535.76 1$6,839.29
$900,000 $4,831.39 $5,110.10 $5,395.95 $5,688.61 $5,987.72 $6,292.93 $6,603.88 $6,920.22 $7,241.60
$950,000 $5,099.81 11$5,394.00 [ 1$5,695.73] I I
$6,004.65 1 $6,320.37 I 1
1$6,642.54
i
$6,97076 1$7,304.68 1$7,643911
$1,000,000 $5,368.22 $5,677.89 $5,995.51 $6,320.68 $6,653.02 $6,992.15 $7,337.65 $7,689.13 $8,046.23
THIS FORMULA IS ONLY A GUIDE AND NOT TO BE CONSTRUED AS ACTUAL LENDING CALCULATIONS.
Contact your loan officer to determine more accurately what price range you should consider. Lenders abide by certain ratios when
calculating the loan amount their customers can qualify for and the ratios vary by lender and loan program. Many use 28% of your
gross monthly income as the maximum allowed for your mortgage payment (principal/interest/taxes/insurance or PITI); for your
total monthly debt, the ratio is 36%. Total monthly expenses means PITI plus long-term debt (such as auto loans) and revolvingl
credit-card debt. Do not include other expenses such as groceries, utilities, clothing, tuition, etc., to calculate this ratio.
I
MONTHLY PAYMENTS I
ON ACCOUNTS, AUTO, I
MONTHLY ALLOWABLE TOTAL DEBIT (C) _
CREDIT CARDS, LOANS I
MINUS MONTHLY DEBIT - (A) _
I
+ I
I =MONTHLY ALLOWABLE PITI (D) _
I
+ I
I
(LESS 20% FOR TAXES & INSURANCE) x.80
+ I
I ALLOWABLE PRINCIPAUINTEREST ONLY (E) _
+ I
L _
I
+ I GROSS MONTHLY INCOME (B) _
I
=TOTAL MONTHLY I
I
x.28
DEBT (A)
I
=MONTHLY ALLOWABLE PITI (F) _
I '
I
I (LESS 20% FOR TAXES &INSURANCE) x.80
----------------------------------,
I
=ALLOWABLE PRINCIPAUINTEREST ONLY (G) _
I
I
GROSS MONTHLY I PAYMENT: ENTER LESSER OF (E) OR (G) ('-.!.H)'-- _
I
INCOME BEFORE
r----------------------------------------------------
I
TAXES (B) _
I LOAN AMOUNT _
I USING CHART ABOVE,
I
x.36 I FIND CURRENT INTEREST RATE. FOR 20% DOWN x"".8""'0
I
= ALLOWABLE _ I
LOCATE PAYMENT AMOUNT IN = HOME PRICE _
I
THAT COLUMN CLOSE TO YOUR
I
TOTAL MONTHLY I
PRINCIPAL AND INTEREST (H). LOAN AMOUNT x=.9=.0
I
DEBT (C) I FIND THE LOAN AMOUNT TO THE
I LOAN 10% DOWN _
I LEFT AND ENTER HERE.
I = HOME PRICE _
•• ~~
W ~~L#'
I First American Title

13. WAYS TO HOLD TITLE IN CALIFORNIA
COMMUNITY PROPERTY
TENANCY IN COMMUNITY
JOINT TENANCY WITH RIGHT
COMMON PROPERTY
OF SURVIVORSHIP
Two or more persons' Two or more persons'
Husband and wife or Husband and wife or
(may be spouses or domestic (may be spouses or
domestic partners. domestic partners.
partners-). domestic partners/).
Ownership can be divided into
Ownership interests Ownership interests Ownership interests
any number of interests, equal
must be equal. must be equal. must be equal.
or unequal.
--
Single conveyance and
One or more conveyances Single conveyance (creating Single conveyance or
spouses or domestic partners
(Law presumes interests are identical interests). Vesting presumption from marriage
must indicate consent which
equal if not otherwise specified.) must specify joint tenancy. or domestic partnership.
can be on deed.
Equal. Equal. Equal. Equal.
Each co-owner may transfer
Each co-owner may transfer or Both spouses of domestic Both spouses of domestic
his/her interest separately
mortgage their interest partners must consent to partners must consent to
but tenancy in common
separately.3 transfer or mortgage. transfer or mortgage.
results.s & 4
Co-owner's interest not
Unless married or domestic Entire property subject to Entire property subject to
subject to liens of other
partners, co-owner's interest not forced sale to satisfy debt of forced sale to satisfy debt of
debtor/owner but forced sa Ie
subject to liens of other debtor/ either spouse or domestic either spouse or domestic
can occur if prior to
owner but forced sale can occur- partner. partner.
co-owner's/debtor's death.
Decedent's Y2 interest
Decedent's interest Deceased's Y2 interest passes
automatically passes to
Decedent's interest passes to automatically passes to to surviving spouse or
surviving spouse or domestic
his/her heirs by will or intestacy. surviving joint tenant domestic partner unless
partner due to right of
("Right of Survivorship"). otherwise devised by will.
survivorship.
Qualified survivorship rights. Right of Survivorship. Mutual
Right of Survivorship
Mutual consent required for consent required for transfer.
Co-owner interests may be (avoids probate). May
transfer. Surviving spouse or Surviving spouse or domestic
separately transferable." have tax disadvantages for
domestic partner- may have partner? may have tax
spouses.
tax advantage. advantage.
1. "Persons" includes a natural person as well as a validly formed corporation, limited partnership, limited liability company or general partnership. Trust property is vested in
the trustee (usually a natural person or corporation).
2. For domestic partners meeting California statutory requirements, benefits are same as community property except certain tax benefits may not be available. Note: Two
unrelated persons who are either (a) same sex, or (b) opposite sex if they meet age or disability requirements, may be domestic partners provided that they are not then
married or in a domestic partnership and comply with other statutory requirements.
3. Transfers by married persons or domestic partners may require a quitclaim deed from spouse/partner for title insurance purposes.
4. If co-owners are married or domestic partners, property may be subject to legal presumption of "community property" requiring consent of both spouses/partners to
conveyor encumber title notwithstanding vesting as "joint tenancy."
I First American TItle II)

14. SEl.:.ECTING
The following home comparison chart is designed to help you remember the homes you visit and what
you liked best and least about each one. Rate features or make notes that will help you determine what
pleased or displeased you.
Remembering each home would appear easy, but it can quickly become confusing. Which home was
near the school? Which one had the great pool? Did it have a family room? And how many bathrooms?
In the "something memorable" category, note something you think is unusual and memorable about
each home, such as a stained glass window, fruit trees, a child's playhouse. This will make it easier for
you to recall the property later and refer to a specific address. And, last but not least, maybe the most
important question, does this house feel like home?
Good luck with your search, and enjoy your house hunting adventure!
HOME 1 HOME2 HOME3 HOME4 HOMES
ADDRESS
ASKING PRICE
NO. BEDROOMS/BATHS
SQUARE FOOTAGE
FIRST IMPRESSION
LOCATION
NEIGHBORHOOD
APPEALING
-~-
LIVING ROOM
DINING ROOM
GREAT ROOM
KITCHEN
FAMILY ROOM
BATHROOM
MASTER BATHROOM
MASTER BATH
BEDROOMS
=s ~
FLOOR PLAN
PATIO
POOL
LANDSCAPING
GARAGE OR CARPORT
SOMETHING MEMORABLE
LDOES THIS FEEL LIKE HOME?
II "°"1
'Lt%
First American TItle

15. rent
Ever thought how much you pay in rent over an extended period of time? Probably a lot more than you realize. The amount you spend for rent
each month could be applied to a mortgage, not only building equity in your own property, but-in most cases-substantially reducing the
Federal and state income taxes you pay each year. And what happens to your rent money? It's gone! There's no interest, no equity, no return.
Interest rates are still low, and you may be surprised at what you can afford. To determine your home-buying ability, call your real estate agent
or lender. The consultation is free-no strings attached-so make the call today!
[RENT •
• YOUR INVESTMENT AND RETURN ]
MONTHLY YOUR
PAYMENT
after 1 year after 3 years after 5 years after 10 years after 15 years RETURN
+ t t t
$ 400
$ 500
4,800
6,000
I
I
I
I
I
14,400
18,000
24,000
30,000
1 48,000
60,000
172,000
90,000
$0
$0
$ 600 7,200 21,600 36,000 72,000 1108,000 $0
$ 700 8,400 25,200 42,000 84,000 1126,000 $0
$ 800 9,600 28,800 48,000 96,000 1144,000 $0
$ 900 10,800 32,400 54,000 108,000 162,000 $0
$ 1,000 12,000 36,000 60,000 120,000 180,000 $0
$ 1,100 13,200 39,600 • 66,000 132,000 198,000 $0
$ 1,200 14,400 43,200 72,000 144,000 216,000 $0
$ 1,300 15,600 46,800 78,000 156,000 i 234,000 $0
$ 1,400 50,400
1252,000
16,800 84,000 168,000 $0
$ 1,500 18,000 54,000 90,000 180,000 270,000 $0
$ 1,750 . 21,000 I 63,000 105,000
1 210 315,000 $0
$ 2,000
$ 2,500
1 1 24
,000
30,000
72,000
90,000
120,000
150,000
'000
240,000
300,000
360,000
450,000
$0
$0
t
~
~---v-.: tt.$
I First American TItle It

16. THE ESCROW PROCESS AT FIRST AMERICAN TITLE
WHAT IS AN ESCROW? An escrow is a process wherein the buyer and
seller deposit written instructions, documents, and funds with a neutral third
party until certain conditions are fulfilled. In a real estate transaction, the AS PART OF OUR SERVICE,
buyer does not pay the seller directly for the property. The buyer gives the FIRST AMERICAN WILL:
funds to an escrow company who, acting as an intermediary, verifies that
title to the property is clear and all written instructions in the contract have
been met. Then the company transfers the ownership of the property to
OPEN escrow and deposit your "good faith"
the buyer through recordation and pays the seller. This process protects
funds in a separate escrow account.
all parties involved.
The state of California licenses and regulates all escrow companies. The
Insurance Commissioner and the state banking department can inspect a
l----,.....
.~ CONDUCT a title search to determine ownership
, and status of the subject property.
company's records at any time, providing further oversight of the company's
management and position as an impartial third party to the transaction.
ISSUE a title commitment
In California, escrow services are generally provided by a title insurance and begin the process to delete or record items
company instead of an attorney. The stability, reliability and performance to provide clear title to the property.
of your title and escrow company are vital to protect the interests of all
parties to the transaction.
Per contract, CONFIRM that the lender
has determined you, the buyer,
are qualified for a new loan.
ASK you to complete a beneficiary's statement
if you are assuming the seller's loan.
HOW IS AN ESCROW OPENED? Once you have completed the contract (or
Purchase Agreement) and the seller has accepted the offer, your realtor MEET all deadlines as specified in the contract.
will open the escrow. The earnest money deposit and the contract are
placed in escrow. As a neutral party to the transaction, First American can REQUEST payoff information for the seller's loans,
respond only to those written instructions agreed to mutually by all
other liens, homeowners association fees, etc.
"interested" parties (seller and buyer); First American cannot otherwise alter
the contract or create instructions, and that protects all interested parties.
PRORATE fees, such as property taxes, per the
contract, and prepare the settlement statement.
SET separate appointments:
Seller will sign documents; you will sign documents
and deposit funds.
HOW TO HOLD TITLE. You should inform your escrow officer and lender as
soon as possible of how you wish to hold title to your home and exactly how your
name(s) will appear on all documents. This allows your lender and title company REVIEW documents ensuring all conditions
to prepare all documents correctly. (Changes later, such as adding or deleting and legal requirements are fulfilled;
an initial in your name, can delay your closing.) You may wish to consult an request funds from lender.
attorney, accountant or other professional before deciding how to hold title.
When all funds are deposited, RECORD
documents at the County recorder to transfer
the subject property to you.
After recordation is confirmed, CLOSE escrow
and disburse funds, including seller's proceeds,
loan payoffs, realtors' commissions,
WHAT HAPPENS AT FIRST AMERICAN? During the escrow period, our
related fees for recording, etc.
title department begins researching and examining all historical records
pertaining to the subject property. Barring any unusual circumstances, a
commitment for title insurance is issued, indicating a clear title or listing PREPARE and send final documents
any items which must be cleared prior to closing. The commitment is sent to parties involved.
to you for review. (See" Explanation of Title Commitment" on the next
page.)
Your escrow officer follows instructions on your contract, coordinates
deadlines, and gathers all necessary paperwork. For example, written
requests for payoff information (called" demands") are sent to the seller's
mortgage company and any other lien holders.
I First American Title

17. WHAT HAPPENS NEXT FOR THE BUYER?
IDENTITY STATEMENT. You will be asked to fill out an Identity
Statement that enables our title department to distinguish you This explanation may help you understand the contents of the
from others with identical names during our search of County Title Commitment you receive from First American Title
records. It also provides basic information that will be useful
for your escrow officer.
SCHEDULE A
HOME LOAN. Unless you are paying cash, assuming a loan,
or the seller is financing, you will need to apply for a home loan This is the information submitted to our Title department
if you have not already done so. Your realtor should be able
by the escrow officer. It contains the basic information given
to recommend several reliable sources for your loan. Apply as
soon as possible to comply with the purchase contract and to to us by the buyer or realtor, such as the legal description
avoid delaying the closing. of the property, sale price, loan amount, lender, name
RESPONSE TO SELLER'S NOTICES. If directed by the contract, and marital status of buyer and seller.
you will receive the following items which require a response
from you. Your realtor can help you with your responses.
SCHEDULE B
a. Seller's property disclosure statement listing any
existing problems known to the seller. The schedule B "exceptions" are items which are tied
to the subject property. These include Covenants, Conditions
b. Information pertaining to the home owners
Association (HOA) or planned unit development and Restrictions (CC&Rs), easements, homeowners
(PUD), such as Covenants, Conditions and association by-laws, leases and other items which will remain
restrictions (CC&Rs), if applicable.
of record and transfer with the property. They are referred
c. Flood hazard disclosure if the property is in a food area. to as "exceptions" because the buyer will receive a clear title
"except" the buyer's rights will be subject to conditions in the
d. Independent inspections, such as termite and septic,
and any repairs as required. CC&Rs, recorded easements, etc. The buyer is asked to sign
a receipt for the schedule B documents which states the
TITLE COMMITMENT. You will receive a copy of the title
commitment when we complete the title search. See across buyer has read and accepts the contents.
for an explanation of the title package you will receive from
First American. If you have questions about the title commit-
ment, contact your realtor or your escrow officer. REQUIREMENTS
These are items that First American needs to delete and/or
record in order to provide a clear title to the property.
Items that need to be addressed include:
- Current property-tax status,
- Any assessments that are owed such as those for a
homeowners association,
CONSIDER THIS. One escrow transaction could involve
over twenty individuals including realtors, buyers, sellers, - Any encumbrances (or liens) on the property.
attorneys, escrow officer, escrow technician, title officer,
Sometimes items show up against a property because another
loan officer, loan processor, loan underwriter, home inspector,
termite inspector, insurance agent, home warranty represent person has a name similar to an involved party. This is one
tative, contractor, roofer, plumber, pool service, and so on. reason we ask for an Identity Statement, to determine if items
And often one transaction depends on another. '
are inaccurate and can be deleted.
When you consider the number of people involved, you
can imagine the opportunities for delays and mishaps. So,
much like an airline pilot can't prevent turbulence during a NOTE
fight, your experienced realtor and escrow team can't
This information is provided by the County Recorder's Office and is
prevent unforeseen problems from arising. However, they
can help smooth out the bumps and, whenever possible, not intended as legal advice. It specifies the proper size, margins
get you safely through to a successful closing.
and print type to beused on documents to be recorded.
If you have any questions, please do not hesitate to call your
escrow officer for information and help.
I First American TItle ID

18. un d e rsta n din 9 TITLE INSURANCE
THE TITLE INDUSTRY IN BRIEF. Prior to the development of the title industry in the late 1800's, a homebuyer received a grantor's
warranty, attorney's title opinion, or abstractor's certificate as assurance of home ownership. The buyer relied on the financial integrity of
the grantor, attorney, or abstractor for protection. Today, title insurance companies are regulated by state statute. They are required to
post financial guarantees to ensure that any claims will be paid in a timely fashion. They also must maintain their own "title plants" which
house duplicates of recorded deeds, mortgages, plats, and other pertinent county property records.
wh at IS TITLE INSURANCE?
Title insurance provides coverage for certain losses due to defects in the title that occurred prior to your ownership.
The seller can give only those rights that previously have been received with" good title." Title insurance protects
against defects such as prior fraud or forgery that might go undetected until after closing and possibly jeopardize
your ownership and investment.
why TITLE INSURANCE IS NEEDED?
Title insurance assures the new buyers that they are acquiring marketable title from the seller. It is designed to
eliminate risk or loss caused by defects in title from the past. Title insurance protects the interest of the mortgage
lender as well as the equity of the buyer for as long as they or their heirs have any interest in the property.
wh e n IS THE PREMIUM DUE?
It is a one-time premium which is paid at the close of escrow. It is customary for the seller to pay for the Owner's
Policy. If there is a new loan, the buyer pays for the Lender's policy. The policy has a perpetual term and provides
coverage for as long as you are in a position to suffer a loss.
do ALL TITLE COMPANIES OFFER THE SAME PROTECTION?
First American Title provides comprehensive title and settlement services for any real estate transaction associated
with a purchase, construction, refinance or equity loan. First American offers exceptional service in every aspect
of your transaction and has a strong reputation that stretches back over a century.
First American provides the technology, expertise and comprehensive selection of title and settlement services to
meet your needs. Drawing on more than a century of experience and innovation, First American is your single source
for accurate, efficient and cost-effective title and settlement solutions.
Any standard American Land Title Association (ALTA) policy covers the same basic items. However, First American
Title's Eagle Policy (our ALTA homeowner's policy of Title Insurance*) combines the easy-to-understand Plain
Language policy with additional coverages, including coverage for events happening after the policy date.**
Some examples:
- Post-policy encroachment. The owner has been in his home for several years when a neighbor builds
a patio cover on the property. We'll provide legal defense.**
- Post-policy Forgery. someone forges the homeowners name on a mortgage. We'll provide legal defense.**
- Building permit violation. A room added prior to the closing date did not receive a city permit, and the new
homeowner is being forced to remove the structure. We'll pay for the removal, per policy limits.**
- Automatic Inflation Coverage of 150%, a 10% increase in the policy amount for each of the first five years.
Note: if you decide to sell your home in the future, new title insurance will be needed to protect your Buyer for the time prior to and
during your ownership for any defects that may have occurred. See below for First American Title's short-term, reduced-rate certificate.
* An ALTA homeowners Title Insurance policy is requested in Line 117 of the revised AAR Residential Resale Real Estate Purchase
Contract, 5/00.
** Deductibles, maximums, and conditions may apply.
"." .. '~ I First American TItle
~- ~

19. ~A_SK_FO_R_O_U_R_Ef4teP~_O_N_Y_O_U_R_N_EX_T_P_U_RC_H_A_S---,E ALTA , ALTA PLAN OUR
STANDARD LANGUAGE EAGLE
>-- -; ~ t-- -;
1. Someone else owns an interest in your title
2. A document is not properly signed ----------------------------------~------~-----
----------
3. Forgery, fraud, duress, incompetency, incapacity or impersonation affects your title
4. Defective recording of any document affects your title
5. You have no legal access to and from your land
Restrictive covenants limit your use of the land
-----------------~--------~------~------"
A lien on your title because there is: (a) a deed of trust, (b) a judgment, tax,
or special assessment, and/or (c) a charge by the homeowners' association
Purchase, lease or loan refused because title is unmarketable
Unrecorded mechanic's liens on your title for labor and materials
10. Others have rights under unrecorded leases, contracts or options
11. Someone else has an unrecorded easement on your land
--------------------
Forced removal of structure because it: (a) extends onto other land or onto an easement,
12.
(b) violates a restriction on schedule b, and/or (c) violates an existing zoning law
13. Cannot use land for single family dwelling or residence because use violates
Other defects, liens, or encumbrances
---------------------r----n------
14.
Plain language
Forgery occurs after policy date
Cloud on title occurs after policy date
J------ Adverse ~--------~------------------~------~~----~------~
possession occurs after policy date ~ _b ~~ ~~
19. Prescriptive easement occurs after policy date
20. --------------------------------------------~----~~----~~---
No legal vehicular and/or pedestrian accessto your land
Forced correction due to violation of covenant, condition or restriction
Someone takes your title due to restriction violation that occurred before policy date
--------------~------~------~--
Violation of land regulation or subdivision law causes: (a) refusal of building permit,
(b) refusal of purchase, lease or loan, and/or (c)forced correction or removal of violation
~--~ removal/correction
Forced of structure due to violation of building permit
--~--~--~~~----~------
25. Forced .correction due to violation of zoning law or regulation
--------"',~-~----~~-----~~-----~~----~
26. Forced removal of structure-includes
------------------------~----~~--~~----
__________________
your boundary wailifence-due to encroachment ~ ~~ -u__, ~
----~--------~~--~------~----~~----~
Permit, purchase, lease or loan refused due to neighbor's encroaching structure
Forced removal of structure due to building setbacks or easement
~--
29. Structure damaged through use or maintenance of easement
30. Improvements damaged from extraction of minerals, water or other substance after policy date
31.
32.
------~--------------_r---~~--_.._--~
Neighbor builds encroaching structure (excludes wall/fence) after policy date
Residence with address shown not located on land at policy date
33. Map not consistent with legal description
34. Title can be transferred to Living Trust after policy date; extends to heirs, trust beneficiaries
35. Automatic increase in coverage to 150% (10% annually for 5 years)
Note: For residential property, 1 to 4 units. Coverage shown are subject to exclusions, Conditions and Schedule B items set forth in the policy. Because of the
nature or location of certain properties, an inspection of the property may be necessary to determine if additional exceptions from coverage need to be shown
in Schedule B of the residential policy which will be noted in the preliminary report. The foregoing table is intended to highlight only some important aspects of
coverage and is not to be construed as expanding or limiting the coverage as set forth in the mentioned title policies. Copies of these policies are available upon
request. Any decision on coverage should be made only after review of the policies themselves.
I First American Title ID