Legal Question in Real Estate Law in California

A title report is not necessarily a full statement of everything on title. Once anything is recorded in the chain of title, it remains forever, but the title report only lists current items that affect title. It also is technically a offer of insurance. So the title report may list things that a lawyer might say are not encumbrances or clouds on title but the title company sees them as questionable and therefore lists them as exceptions. All of which is to say what the title company includes or removes from a title report is an underwriting decision. Generally a title report will match what an abstract of title prepared by a lawyer or title examiner would say, but not always.

That said, generally an easement granted after a deed of trust is recorded is cancelled by foreclosure of the deed of trust, but that is not 100% true. There are a few exceptions, including an easement granted to resolve a claim of easement by necessity. If there is anything questionable about whether the easement was effectively wiped out the title company would leave it as an exception in the title report