What Is a Preliminary Title Report?

During escrow, buyers receive a variety of documents that can seem unfamiliar at first glance. One of the most important is the Preliminary Title Report, often called a "Prelim."

While it isn't the most exciting document in the transaction, it plays an important role by identifying information about the property's ownership and any recorded items that could affect the transfer of title.

What's Included in a Preliminary Title Report?

The report provides a snapshot of the property's recorded history. Depending on the home, it may include information such as:

• The current legal owner
• The legal description of the property
• Existing loans secured by the property
• Easements
• Covenants, Conditions & Restrictions (CC&Rs)
• Recorded liens or other matters affecting title

The report doesn't necessarily indicate that something is wrong. Instead, it helps identify items that should be reviewed before the transaction is completed.

Why Is It Important?

The goal is to help ensure the seller can transfer clear ownership to the buyer at closing.

If the report identifies an issue—such as an unresolved lien or another recorded matter—it can often be addressed before the sale is finalized. Reviewing the report early gives everyone involved an opportunity to resolve potential concerns before closing day.

Who Reviews It?

The title company prepares the Preliminary Title Report, but several parties review it during the transaction.

Your real estate agent, escrow officer, lender (if financing is involved), and the buyer all have a role in reviewing the information and making sure any questions are addressed before closing.

If something in the report isn't familiar, don't hesitate to ask questions. It's far better to understand the document during escrow than after you've taken ownership of the home.

A Preliminary Title Report is one of the many safeguards built into the home buying process. While it may seem like just another piece of paperwork, it provides valuable information about the property's ownership history and helps ensure the transfer of title can move forward with confidence.