When you open escrow on a property a preliminary report will be prepared by a title company prior to issuing a title i
nsurance policy.
The report will show the ownership of a specific parcel of land. In addition it will note all liens and encumbrances that will not be covered under a subsequent title insurance policy.
As a potential buyer, it is very important to review the preliminary title report to ensure title is delivered as clean as possible. While every property will have some exceptions it’s important that you understand them thoroughly because some exceptions will need to be removed prior to closing and others may be exclusions from your title policy.
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