Buyers Guide - Cliff Bakemeier

PRELIMINARY “TITLE” REPORT WHAT IS IT?

Since these except ions may point to potent ial problems wi th an intended purchase, i t i s impor tant for al l part ies to review the repor t once i t i s received. The Security Title Preliminary Title Report is an offer to issue a policy of title insurance covering a particular estate or interest in land subject to stated exceptions. A Prel iminary Ti t le Repor t provides a l i st of the matters which wi l l be shown as except ions to coverage in a des ignated pol icy or pol icies of t i t le insurance, i f i ssued concurrent ly, cover ing a par t icular estate or interest in land. I t i s intended to faci l i tate the i ssuance of the des ignated pol icy or pol icies . I t i s normal ly prepared af ter appl icat ion (order) for such pol icies of t i t le insurance on behal f of the pr incipal s to a real property transact ion. The Prel iminary Ti t le Repor t states on i ts face that i t i s made solely to faci l i tate the subsequent i ssuance of a t i t le insurance pol icy and that the insurer assumes no l iabi l i ty for errors in the report . Accordingly, any claim ar i s ing f rom a defect in t i t le must be made under the t i t le pol icy and not the Prel iminary Ti t le Repor t .

I f a t i t le pol icy i s not contemplated, a Prel iminary Ti t le Report should not be ordered. Instead, cons iderat ion should be given to request ing a Condi t ion of Ti t le Report or other s imi lar t i t le product .

Af ter a t i t le order has been placed, mat ters relat ive to the t i t le pol icy coverage on the subject proper ty are assembled in a t i t le search package and examined by ski l led technicians . Thi s i s when the Prel iminary Ti t le Repor t i s prepared and sent to the customer. The report contains relevant informat ion so that the par t ies to the t ransact ion wi l l become aware of matters which wi l l not be insured against by the t i t le company. Thi s report i s i ssued before the t i t le pol icy, hence the name Prel iminary Ti t le Repor t .

WWW. S ECUR I TYT I T L E . COM

Co p y r i g h t 2 0 1 7 S e c u r i t y T i t l e : Co n t e n t c a n n o t b e e d i t e d o r r e p r o d u c e d w i t h o u t w r i tt e n p e r m i s s i o n f r om S e c u r i t y T i t l e . A l l c o n t e n t h e r e i n i s i n f o r ma ti o n a l o n l y a n d n o t i n t e n d e d t o offe r l e g a l o r fi n a n c i a l a d v i c e .