What is a preliminary title report?

A preliminary title report, also known as a preliminary title commitment or a preliminary title opinion, is a report that provides details about the ownership and status of a property's title before it is transferred or sold. This report is typically ordered by a buyer, seller, or lender during the escrow process of a real estate transaction.

The preliminary title report includes information such as the legal description of the property, the current owner of the property, any liens or encumbrances on the property, and any easements or restrictions that may affect the property. It also provides details about the property's title history, including any past transfers of ownership.

This report is important because it helps parties involved in a real estate transaction to understand the status of the property's title and any potential issues that may need to be resolved before the sale can be completed. It also helps to ensure that the buyer will receive clear title to the property and that the lender's investment in the property is protected.

Ultimately, a preliminary title report plays a crucial role in the due diligence process of a real estate transaction and helps to protect all parties involved in the transaction.