Page 21 - Oregon Title and Escrow Resource

When and how is the preliminary title report produced?

Shortly after escrow is opened, an order will be placed with the title company which will then begin the process
involved in producing the report.

This process calls for the assembly and review of certain recorded matters relative to both the property and the
parties to the transaction. Examples of recorded matters include a deed of trust recorded against the property or
a lien recorded against the buyer or seller for an unpaid court award or unpaid taxes.

These recorded matters are listed numerically as “exceptions” in the preliminary title report. They will remain
exceptions from title insurance coverage unless eliminated or released prior to the transfer of title.

What should I look for when reading my preliminary title report?

You will be interested, primarily, in the extent of your ownership rights. This means you will want to review the
ownership interest in the property you will be buying and the description of the property, as well as any claims,
restrictions or interests of other people involving the property.

The report will note in a statement of vesting the degree, quantity, nature and extent of the owner’s interest in
the real property. The most common form of interest is “fee simple” or “fee” which is the highest type of interest
an owner can have in land.

Liens, restrictions and interests of others which are being excluded from coverage will be listed numerically as
“exceptions” in the preliminary title report. These may be claims by creditors who have liens or liens for payment
of taxes or assessments. There may also be recorded restrictions which have been placed in a prior deed or
contained in what are termed “CC&Rs (covenants, conditions and restrictions).” Finally, interests of third parties
are not uncommon and may include easements given by a prior owner which limit your use of the property.
When you buy property, you may not wish to have these claims or restrictions on your property. Instead, you
may want to clear the unwanted items prior to purchase.

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