Understanding Preliminary Title Reports Baltimore MD

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.

Kenneth Scott Gross
(410) 727-7702
2 CHARLES CENTER 218 N CHARLES ST STE 400
BALTIMORE, MD
Specialties
Real Estate, Business, Tax
Education
Georgetown University Law Center,University of Pennsylvania
State Licensing
Maryland

Ilene Allison Bailey
(410) 659-4449
7 Saint Paul Street , Ste 1000
Baltimore, MD
Specialties
Real Estate
Education
University of Baltimore School of Law,Lehigh University
State Licensing
Maryland

Shaun F Carrick
(410) 385-3401
14th Fl, 10 Light St
Baltimore, MD
Specialties
Public Finance, Construction, Real Estate
State Licensing
Maryland

David B. Woo
(410) 235-1478
2632 N CHARLES ST STE 1
BALTIMORE, MD
Specialties
Business, Corporate, Estate Planning, Divorce, Real Estate
State Licensing
Maryland, Pennsylvania

Matthew W Oakey
(410) 727-7702
2 CHARLES CENTER 218 N CHARLES ST STE 400
BALTIMORE, MD
Specialties
Public Finance, Debt Agreements, Business, Real Estate, Tax
Education
Washington University School of Law,University of Chicago
State Licensing
Maryland

Adam Bartholomew Connolly
(410) 727-7702
2 CHARLES CENTER 218 N CHARLES ST STE 400
BALTIMORE, MD
Specialties
Real Estate, Business, Public Finance
Education
University of Maryland School of Law,Stanford University,Stanford University
State Licensing
Maryland

Roma Khanna
(410) 752-6030
One South Street, Suite 2600
Baltimore, MD
Specialties
Corporate, Business, Real Estate, Commercial
Education
University of Minnesota Law School,University of Michigan, Ann Arbor
State Licensing
Illinois, Maryland

Edward Urban Lee III
(410) 347-8704
Seven Saint Paul Street
Baltimore, MD
Specialties
Real Estate
Education
University of Baltimore School of Law,University of Richmond
State Licensing
Maryland

Ann Clary Gordon
(410) 385-4225
Fl 20, 36 S Charles St
Baltimore, MD
Specialties
Real Estate, Business, Commercial
State Licensing
Maryland

Steven A Thomas
(410) 752-2468
100 Light St, Suite 1100
Baltimore, MD
Specialties
Mergers & Acquisitions, Corporate, Real Estate, Construction
Education
University of Richmond, The T. C. Williams School of Law,Randolph-Macon College
State Licensing
DC, Maryland

Understanding Preliminary Title Reports

Provided by: 

  • 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.

    Visit Homesalesnetwork.com for more information