Three things to know regarding preliminary title reports

    As a buyer, there are dozens of records that helps you to disclose or inform regarding the significant knowledge regarding the real estate property. One among the records is the title report which documents vesting, ownership and details about anything that is recorded against the abode like liens, easements or encroachments.

    The title company comprises the report from a search of district records to issue any liens against the home that are listed to a title policy as “exceptions” and title insurance. The below mentioned are the three major significant pieces of the title report that you must read and review carefully.

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    The legal description

    You won’t see regarding the legal description in any of the real estate agent advertisement or marketing. This legal description is the written document describing the property’s boundaries and location of the property and its relation with the in close proximity streets and intersections.

    In the case of a planned unit development or condominium, this document will comprise the non-exclusive or exclusive easements, property’s interest in any common regions, details on any storage or parking the conveys with the home.


    On a title report, property taxes specifies as the primary “lien”. Hence, your property with the outstanding due property taxes cannot be transferred to other person. As the top lien, the title report will specify whether taxes are paid fully or in due. Prior any debt holder is being paid off, you must settle property taxes.

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    Mortgage liens

    They are typically listed under property taxes directly and the largest mortgage lien holder takes the first position and orderly takes the second and the third positions. Apart from these there are distinct items that could point on a title report apart from taxes and loans are listed below.


    If any other person has ownership on the property to access the property through an easement, it would be specified on the title report.


    There are Covenants, conditions and Restrictions (CC&Rs) in the case of a PUD or condo, recorded against the property. In case of any new buyer purchase takes places it is subject to abide according to the rules and regulations specified in the CC&Rs. This is the major reason that makes it significant for prospective buyers to review the report as once they become the owner of the property, they become subject to those restrictions and rules.

    Final Verdict

    As a prospective buyer, it becomes inevitable that you along with your real estate attorney should carefully scrutinise the preliminary title report. If you find your choice of property is subject to any sort of special items, or you find any other issues dealt on the title report that would create impact on your home ownership, it is significant that you require understanding them completely prior you close the deal.

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