Page 8 - California Home Sellers Handbook

03 Statement of Information

A Guide to: Statement of Information

What’s in a name? When a title company seeks to uncover matters affecting title to real
property, the answer is, “Quite a bit.”

Statements of Information provide title companies with the information they need to distin-
guish the buyers and sellers of real property from others with similar names. After identify-
ing the true buyers and sellers, title companies may disregard the judgments, liens or other
matters on the public records under similar names.

To help you better understand this sensitive subject, the California Land Title Association
has answered some of the questions most commonly asked about Statements of Informa-
tion.

What is a Statement of Information?
A Statement of Information is a form routinely requested from the buyer, seller and borrower
in a transaction where title insurance is sought. The completed form provides the title com-
pany with information needed to adequately examine documents so as to disregard matters
which do not affect the property to be insured, matters which actually apply to some other
person.

What does a Statement of Information do?
Every day documents affecting real property--liens, court decrees, bankruptcies-- are
recorded. Whenever a title company uncovers a recorded document in which the name
is the same or similar to that of the buyer, seller or borrower in a title transaction, the title
company must ask, “Does this document affect the parties we are insuring?” Because, if
it does, it affects title to the property and would, therefore, be listed as an exception from
coverage under the title policy. A properly completed Statement of Information will allow the
title company to differentiate between parties with the same or similar names when search-
ing documents recorded by name. This protects all parties involved and allows the title
company to competently carry out its duties without unnecessary delay.

5