Page 20 - Oregon Title and Escrow Resource

Preliminary Title Report

PRELIMINARY TITLE 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 title 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 title report?

A preliminary title 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 title report play in the real estate process?

A preliminary title report contains the conditions under which the title company will issue a particular type of
title insurance policy.

The preliminary title 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
title report. The report may then be reviewed and discussed by the parties to a real estate transaction and their
agents.

Thus, a preliminary title report provides the opportunity to seek the removal of items referenced in the report
which are objectionable to the buyer prior to purchase.

15