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Preliminary CALIFORNIA

Report OREGON
HAWAII

Preliminary Reports - Some Basics
After months of searching, you’ve finally found it, your perfect
dream home. But is it perfect? Will you be purchasing more
than just a beautiful home? Will you also be acquiring liens
placed on the property by prior owners? Have documents
been recorded that will restrict your use of the property?

The preliminary report will provide you with the opportunity,
prior to purchase, to review matters affecting your property
which will be excluded from coverage under your title
insurance policy unless removed or eliminated before your
purchase.
What is a Preliminary Report?

A preliminary report is a report prepared prior to issuing a
policy of title insurance that shows the ownership of a specific
parcel of land, together with the liens and encumbrances
thereon which will not be covered under a subsequent title
insurance policy.

What role does a Preliminary Report play in the real
estate process?
A preliminary report contains the conditions under which the
title company will issue a particular type of title insurance
policy.
The preliminary report lists, in advance of purchase, title
defects, liens and encumbrances which would be excluded
from coverage if the requested title insurance policy were to
be issued as of the date of the preliminary report. The report
may then be reviewed and discussed by the parties to a real
estate transaction and their agents.
Thus, a preliminary report provides the opportunity to seek When and how is the Preliminary Report produced?
the removal of items referenced in the report which are Shortly after escrow is opened, an order will be placed with
objectionable to the buyer prior to purchase. the title company which will then begin the process involved
in producing the report.

This process calls for the assembly and review of certain
recorded matters relative to both the property and the
parties to the transaction. Examples of recorded matters
include a deed of trust recorded against the property or a
lien recorded against the buyer or seller for an unpaid court
award or unpaid taxes.

These recorded matters are listed numerically as
“exceptions” in the preliminary report. They will remain
exceptions from title insurance coverage unless eliminated
or released prior to the transfer of title.