What is a Preliminary Title Report?????
So you’ve finally purchased the home of your dreams and can’t wait to move in, but do you really know what you are getting with it? Are there any liens on the property that you will now acquire by the previous owners or is there going to be anything restricting what you can do on the property? Well that’s why you have a Preliminary Title Report. Most buyers don’t read through this simply because it gets lost with all the other paperwork associated with buying a home.
Your Preliminary Title Report is essential for you to read upon receiving it. A “prelim” as we call it in the business, is basically a document prepared on real property once escrow is opened. This report provides important information on the property that you are purchasing. It will have things on it such as: how title is being held, easement, liens, and encumbrances.
Some important things to look for when reading through your prelim are any mechanics liens, notice of action, bankruptcy, uninsured deeds, and access. If you come across any of these on your preliminary report know that they will require immediate attention and/or could result in a delay. Your agent will need to work with the seller and the seller’s agent to resolve any of these issues prior to you taking title to the property. If you are ever unsure of the information that you are reading in your prelim, you can always turn to your agent, escrow officer, or even to the title company insuring the property.
Once you have closed escrow and your deed of trust has been recorded, then your title company will issue your Title Insurance Policy. This will now have your vesting on it along with your any deeds you have recorded on the property.