What is the primary purpose of a preliminary title report?

The primary purpose of a preliminary title report is to provide information about the property’s title status. This document is essential in real estate transactions as it outlines the current ownership of the property and any existing liens, encumbrances, or other potential issues that could affect ownership or transfer of the title. The report serves as a critical tool for buyers and sellers, allowing them to understand the legal complexities related to the property before finalizing a sale.

This information helps parties involved in the transaction make informed decisions, ensuring that they are aware of any potential obstacles to the transfer of ownership or any debts that must be resolved prior to closing. By clarifying the title status and disclosing any pertinent details regarding the property’s encumbrances, the preliminary title report plays an essential role in safeguarding the interests of all parties involved in the real estate transaction.