A preliminary title report is a preliminary snapshot of the ownership history, liens, and encumbrances that could affect a property. This guide explains how to obtain one, what information it typically contains, and how to use it to make informed real estate decisions in the United States.
Understanding A Preliminary Title Report
A preliminary title report is issued by a title company, lender, or attorney, typically before a real estate transaction closes. It lists current ownership, recorded liens, easements, encroachments, and potential title defects. Unlike a final title commitment, it is not a guarantee of marketable title but provides a roadmap for due diligence. This report helps buyers, lenders, and agents identify issues that may require resolution before closing.
What It Includes
A standard preliminary title report covers: owner of record, legal description, parcel number, recorded liens and judgments, easements and rights of way, survey exceptions, restrictions or covenants, boundary issues, and any unresolved or outstanding transfers. It may also flag unrecorded matters based on current public records and indicate items that require curative actions prior to closing. The level of detail can vary by jurisdiction and provider.
How To Request A Preliminary Title Report
To request, gather property details such as the street address, parcel number, and the seller’s or lender’s contact information. Submit the request to a title company, real estate attorney, or mortgage lender; many jurisdictions offer online portals for title searches. The requester will typically authorize a title search and pay a recording fee. In some cases, a lender may provide a preliminary report as part of the loan process, especially for purchases or refinances.
Costs And Timelines
Costs for a preliminary title report vary by county, property type, and provider but generally range from $100 to $400. Expedited requests may incur higher fees. Timelines depend on the local government’s recording pace and the provider’s workload, often from 1 to 5 business days. Rural or complex properties may require longer. Buyers should budget for delays and include a cushion for potential issues identified in the report.
How To Review And Use The Report
Carefully review every item listed. Confirm current ownership matches the seller’s title, verify lien amounts and clearance requirements, and note any encumbrances that could affect use or future sale. Pay attention to list dates, exceptions, and any noted curative actions. Use the report to draft a clear path for title clearance, such as paying off liens, obtaining releases, or negotiating with owners to remove defects before closing.
Common Pitfalls And How To Mitigate Them
Common issues include uncured liens, undisclosed heirs, boundary disputes, and unrecorded rights of way. To mitigate risk, order the report early in the process, review it with legal counsel or a seasoned real estate professional, and verify critical items with official records. Consider obtaining a survey if boundary concerns appear or if the property has ambiguous parcel boundaries. Always confirm the chain of title aligns with property disclosures.
Using The Report In A Real Estate Transaction
In a purchase, send the preliminary title report to the lender and closing attorney for review. Use findings to negotiate repairs, credits, or price adjustments based on title defects. For refinances, verify that existing liens are reflected correctly and prepare to clear any new encumbrances. Throughout the process, maintain open communication with the title company to track required documents and releases. A proactive approach reduces last‑minute delays at closing.