Legal Question in Real Estate Law in California

A grant deed in California contains two implied covenants: that the seller has not previously conveyed the interest he is granting to the buyer to anyone else; and that the seller has not encumbered the property being sold with any liens except those that have been disclosed to the buyer. These covenants or warranties do not apply to or protect the buyer against title problems arising prior to the seller's ownership. Warranty deeds used in the Midwest and on the East Coast generally include more complete warranties of good title.

Eastern-style warranty deeds can be and occasionally are used in California. Nevertheless, our experience with California-style grant deeds, coupled with title insurance, has proven to be a reasonably satisfactory alternative.

If both buyer and seller are agreeable to use of a warranty deed, no harm in telling the escrow holder that's what is wanted, and see if it can deal with it. An attorney should make sure any "imported" deed form also meets California requirements.

His preference doesn't count. California title companies will not, or should not, accept anything except a Grant Deed for this purpose. Neither should you. But, if the title company will issue unrestricted and unlimited standard coverage with his 'preference', so be it. I doubt they will.