What is a Preliminary Title Report and Why is it Important When Buying a House?

"A preliminary title report is not the same as title insurance. Instead, it identifies potential ownership issues or claims that must be resolved before the title insurance policy is issued at closing."

"When you get a mortgage, your lender will have a substantial lien on your home until the mortgage is paid off. This lien allows the lender to take possession of the home and sell it if the homeowner has not made mortgage payments."

"Tax liens are also common, as any property taxes that are still due are considered a 'lien.' The current owner must resolve their property tax bill before the home can be sold."

A preliminary title report is a document provided to buyers within days of purchase that identifies potential ownership issues or claims requiring resolution before title insurance is issued at closing. Unlike title insurance itself, this report serves as a critical review tool for buyers to examine before the closing deadline. Common issues include mortgage liens, which give lenders legal claims on the property until the mortgage is paid off, and tax liens resulting from unpaid property taxes or other outstanding tax obligations. Buyers must promptly address any identified problems with their agent and title company to ensure a smooth transaction and clear ownership transfer.

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