What Is a Preliminary Title Report?

A preliminary title report is one of the most important documents you will receive during a real estate transaction. It provides a snapshot of the property's ownership history and identifies any issues that need to be resolved before closing.\n\nWhat Is a Preliminary Title Report?\n\nA preliminary title report, sometimes called a prelim, is a document prepared by the title company after searching public records related to the property. It shows who currently holds legal ownership, what liens or debts are recorded against the property, whether there are easements or restrictions that affect the property, and whether there are any other encumbrances or title defects.\n\nInformation Before Closing\n\nThe preliminary title report gives you critical information before you commit to the purchase. It can reveal unpaid property taxes, homeowner association liens, judgments against the seller, easements that grant others access to your property, or deed restrictions that limit how you can use the property.\n\nIf the report reveals issues, the seller is typically required to resolve them before closing. Unpaid liens must be paid off. Easements and restrictions should be disclosed and understood. If a problem cannot be resolved, you may have the right to cancel the contract.\n\nWhy Buyers Should Review It\n\nReview the preliminary title report carefully with your agent. Make sure the legal description matches the property you are buying. Check that the seller's name matches the owner of record. Note any easements or restrictions that could affect your use of the property. If you have questions, ask.\n\nWhy Sellers Should Care Too\n\nSellers should also review the preliminary title report. It confirms your ownership and ensures there are no surprises that could delay or prevent closing. If you have unpaid liens or judgments, you will need to resolve them before you can transfer clear title to the buyer. Addressing these issues early prevents last-minute delays.\n\nThe preliminary title report is a tool that helps both buyers and sellers move toward closing with full knowledge of the property's title status.