Page 22 - Oregon Title and Escrow Resource

In addition to the limitations noted above, a printed list of standard exceptions and exclusions listing items not
covered by your title insurance policy may be attached as an exhibit item to your report. Unlike the numbered
exclusions, which are specific to the property you are buying, these are standard exceptions and exclusions
appearing in title insurance policies. The review of this section is important, as it sets forth matters which will
not be covered under your title insurance policy, but which you may wish to investigate, such as governmental
laws or regulations governing building and zoning.

Will the preliminary title report disclose the complete condition of the title to a property?

No. It is important to note that the preliminary title report is not a written representation as to the condition of
title and may not list all liens, defects and encumbrances affecting title to the land, but merely report the current
ownership and matters that the title company will exclude from coverage if a title insurance policy should later
be issued.

Is a preliminary title report the same thing as title insurance?

Definitely not. A preliminary title report is an offer to insure; it is not a report of a complete history of recorded
documents relating to the property. A preliminary title report is a statement of terms and conditions of the offer
to issue a title insurance policy, not a representation as to the condition of title.

These distinctions are important for the following reasons: first, no contract or liability exists until the title
insurance policy is issued; second, the title insurance policy is issued to a particular insured person and others
cannot claim the benefit of the policy.

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