In real estate transactions, a preliminary title report is a document that outlines the current condition of title to a property prior to a sale or loan closing. It identifies the vested owner and discloses recorded liens, encumbrances, easements, and other matters affecting title.
The preliminary title report allows the parties to review and address title issues before completing the transaction. After the transaction is finalized and any required conditions are satisfied, a title insurance policy is issued to insure against covered defects in title.
