ActiveStatutePrimary sourceSource ID ca-ins-code-12340-11

California Insurance Code Section 12340.11 (a preliminary report is an offer, not a representation about the title)

Published by California Legislative Counsel (leginfo.legislature.ca.gov). Jurisdiction CA.

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Exactly what this source supports

These are the only claims this record is used to carry anywhere in the library.

  • Section 12340.11 defines preliminary report, commitment, or binder as reports furnished in connection with an application for title insurance that are offers to issue a title policy subject to the stated exceptions set forth in the reports.

    claim ca-ins-code-12340-11#c1
  • Section 12340.11 provides that such reports are not abstracts of title.

    claim ca-ins-code-12340-11#c2
  • Section 12340.11 provides that such reports do not constitute a representation as to the condition of title to real property.

    claim ca-ins-code-12340-11#c3
  • Section 12340.11 provides that such reports do constitute a statement of the terms and conditions upon which the issuer is willing to issue its title policy, if the offer is accepted.

    claim ca-ins-code-12340-11#c4

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Reviewer notes

This is the provision a buyer is most likely to be wrong about. A preliminary report arrives looking like the result of a search and reads like a description of the title, and the statute says in terms that it is neither an abstract nor a representation as to the condition of title. It is an offer, and the exceptions listed in it are the terms of that offer rather than a list of problems someone has promised to resolve.

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