Understanding Preliminary Title Reports Loveland OH

When preparing to purchase a home, title insurance becomes a major priority. Before issuing your title insurance, the title company will first issue you a Preliminary Report.
David Gepford Agency
(513)583-3740
9415 Fields Ertel Rd
CINCINNATI, OH
Allstate Insurance-Ernest A. Almanza
(513)745-9009
9361 Montgomery Rd (se Habla Espanol)
CINCINNATI, OH
A-Buening Insurance Agency Inc
(513)791-8082
9408 Kenwood Road
CINCINNATI, OH
Hylant Group
(513)985-2400
8044 Montgomery Rd Ste 380
CINCINNATI, OH
David M. Huxhold Agency
(513)755-0766
9374 Cincinnati Columbus Rd
CINCINNATI, OH
Allstate Insurance - John Renz
(513)697-9098
6417 Branch Hill-guinea Pike Suite #104
LOVELAND, OH
American International Trade & Services
(513)489-6422
11134 Kenwood Road
CINCINNATI, OH
Albers THOS E Insurance
(513)891-3304
9200 Montgomery Road
CINCINNATI, OH
Shea Insurance Agency
(513)398-1796
763 Reading Road
MASON, OH
Dowrey Stover Insurance
(513)398-6971
127 West Main Street
MASON, OH

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Understanding Preliminary Title Reports

  • Report created by Title Company prior to issuing of title insurance
  • Work on a Preliminary Report begins just after escrow opens
  • IS NOT title insurance, just a report
  • Title Companies can still protect your interests through “binders” and “commitments” prior to the closing of the transaction
  • Look for the extent of your ownership rights on the Report
  • Includes a listing liens and encumbrances that won’t be covered
  • Liens and encumbrances that are covered will not be on the Report
  • Work with the seller and seller’s agent to clear liens prior to purchase

    When preparing to purchase a home, title insurance becomes a major priority. Before issuing your title insurance, the title company will first issue you a Preliminary Report. A Preliminary Report is a means to protect the buyer from any unforeseen costs or liabilities associated with the property in question. Work on this report can begin as soon as escrow opens. The title company will seek out all documents related to the property in order to figure out what restrictions they will place on your coverage.

    It is important to remember that a Preliminary Report offers no insurance coverage. It is only a report with terms and conditions for a title insurance policy. There is no contract or liability for the title company until the actual insurance policy is issued. The title insurance policy is issued to an individual and others cannot claim its benefits.

    You can still protect your interests prior to issuance of your title insurance policy through “binders” and “commitments” issued by your title company. Binders give temporary coverage until the actual policy is issued; commitments are the contractual obligations of the title company to insure your property once you have met their stated requirements.

    When viewing a Preliminary Report, there are some important things to look for. First among these is a listing of title defects, liens and encumbrances which will not be covered by the insurance policy issued by the title company as of the date of the issuance of the Preliminary Report. These are listed in a numbered list under the heading “Exceptions” on the Preliminary Report. Exceptions can be any number of things, from creditors who have liens for unpaid taxes or assessments, to restrictions contained in the covenants, conditions, and restrictions of the property (CC&Rs), to third party limitations on property usage. This listing gives you the opportunity to discuss these issues with the title company and the seller prior to purchase, allowing you to possibly clear them from the property.
    Second, look for information on your ownership rights. This includes your personal ownership interest in the property, in addition to any claims, restrictions, or interests of other people in the property. There will be a statement of vesting telling the degree, quantity, nature, and extent of the owner’s interest in the property. The highest type of interest, and also the most common, is “fee simple” or just plain “fee.”
    Usually included is a list of standard exceptions and exclusions for the title company. Your property is not necessarily affected by any of these exceptions, but they give you important information for coverage on future usage of your property that may or may not be covered by your title insurance.
    Keep in mind that the Preliminary Report only includes liens, defects, and encumbrances affecting the title insurance policy. The property may have other issues which will affect your title to the land that are not listing on the Report.
    For more information regarding Preliminary Reports, talk to your real estate agent or your attorney. Also helpful are your escrow and title companies.

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