WHAT IS A "PRELIMINARY TITLE REPORT"

A "Preliminary Report" (sometimes referred to as a "Commitment"), is an important part of the transaction.  It is an offer to insure the title to the property.  It shows items that will be reflected on the title insurance policy.  When you open your escrow, your Escrow Officer will order a preliminary report.  (Those of us in the business frequently refer to this report as a "prelim" or "PTR").  This report generally takes one to three working days to complete and a copy will be sent to you and your agent as soon as it is prepared.

Preliminary reports are issued only after a thorough search and evaluation of public records.  They are also based on information that has been gathered by the title company over the course of many years.  The preliminary report shows items that are encumbrances against the property; such as taxes, easements, deeds of trust  and mortgages, liens and judgments.

Your Escrow Officer will thoroughly review the preliminary report as soon as he/she receives a copy.  He/she has many years of experience and can quickly spot "red flags".  Your real estate agent will also receive a copy and should alert you if there are important matters which must be cleared before escrow closes.  Through the course of the escrow, our Escrow Officers will be working closely with you and your agent to clear up problems to the title.  In many cases, this means working closely with the local tax collector, child support officers, contractors, Home Owners' Associations, the IRS and any other agency which may have placed a lien on the property.  Also available in our search will be evidence that all previous loans on the property have been paid off.  You may be asked to complete a "Statement of Identity" form, (which we call an "ID Statement") to make sure that all matters of public record pertain to YOU and not to another person named "Tom Jones"!  Please complete and return this to us immediately after you receive it.  As with all information that you provide to us, all of the "ID" information is strictly confidential.