Key takeaways
- A preliminary title report shows whether a seller is legally allowed to sell the home.
- It can reveal issues, like liens or easements, that could cause problems with the sale.
- You should address any issues immediately with your agent and title company.
Beginning the closing process on a home is an exciting time, but there are several steps you’ll need to clear before officially receiving the keys. One of those steps is to get and review a preliminary title report. If you aren’t familiar with why a preliminary title report is important, don’t worry, we’re here to help.
In this Redfin article, we’ll outline what a preliminary title report covers and why it’s important for you as the buyer. Whether you’re buying a house in Houston, TX, or a condo in Boston, MA, here’s what you need to know before you receive your preliminary title report.
What is a preliminary title report?
A title refers to the legal ownership rights to a property and its history of ownership. After the buyer and seller sign the purchase agreement, an attorney or title company will review the home’s title. They’ll look for any problems that may prevent the home from being legally sold.
The results are written up for the buyer in a preliminary title report. You’ll usually get your preliminary title report within a few days, which you should review as soon as you receive it. You typically only have a few days to review the report and raise concerns.
A preliminary title report is not the same as title insurance. Instead, it identifies potential ownership issues or claims that must be resolved before the title insurance policy is issued at closing.
Why do I need a preliminary title report?
The preliminary title report will show if anyone other than the seller has a legal claim on the property. For example, a title report could show that the seller is recently divorced and is selling the home without the permission of their ex-spouse. It can also