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.

Robert R Kern JR
(410) 727-7702
2 CHARLES CENTER 218 N CHARLES ST STE 400
BALTIMORE, MD
Specialties
Real Estate, Business
Education
University of Maryland School of Law,Loyola College
State Licensing
Maryland

Robert W Cannon
(410) 332-8816
9th Fl, 500 E Pratt St
Baltimore, MD
Specialties
Real Estate, Land Use & Zoning, Construction
State Licensing
Maryland

Matthew Joseph Salafia
(410) 727-9790
10 E MULBERRY ST
BALTIMORE, MD
Specialties
Contracts, Real Estate, Litigation
Education
University of Baltimore School of Law,University of Baltimore
State Licensing
Maryland

Christopher Charles Canada
(410) 843-3536
401 E PRATT ST STE 2315
BALTIMORE, MD
Specialties
Public Finance, Business, Corporate, Real Estate
Education
Case Western Reserve University School of Law,Hobart College
State Licensing
Maryland

Francie Cohen Spahn
(410) 332-8613
500 E Pratt St
Baltimore, MD
Specialties
Construction, Real Estate, Land Use & Zoning
State Licensing
Maryland

Jeffrey M Keehn
(410) 244-7748
2 HOPKINS PLZ STE 1800
BALTIMORE, MD
Specialties
Business, Corporate, Securities Offerings, Mergers & Acquisitions, Real Estate
Education
University of Baltimore School of Law,Emory University,University of Georgia
State Licensing
Maryland

Sandon Lee Cohen
(410) 332-1400
201 N. Charles Street, Suite 2404
Baltimore, MD
Specialties
Business, Corporate, LLC, Real Estate, Commercial
Education
University of Pennsylvania Law School,George Washington University
State Licensing
Maryland

Kimberly Anne Manuelides
(410) 332-8844
500 E Pratt St
Baltimore, MD
Specialties
Real Estate, Landlord & Tenant, Construction
State Licensing
Maryland

Joseph J Mezzanotte
(410) 347-8700
7 Saint Paul St Ste 1400
Baltimore, MD
Specialties
Real Estate, Land Use & Zoning, Commercial, Residential, Equipment Finance
Education
University of Baltimore School of Law,Boston College
State Licensing
DC

David Ethan Wolfe
(410) 727-4083
Suite 1200, 300 East Lombard Street
Baltimore, MD
Specialties
Real Estate
Education
Washington University
State Licensing
Maryland, Texas

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