The Preliminary Report is an offer to issue a policy of the title insurance covering a particular estate or interest in land subject to stated exceptions.

Since these exceptions may point to potential problems with your intended purchase, it is important for all parties to review the report one it is received.

A Preliminary Report provides a list of the matters which will be shown as expectations to coverage in a designated policy or policies of title Insurance,if issued currently,covering a particular estate or interest in land. It is designed to provide an interim, or “preliminary” reponse to an application for title insurance and is intended to facilitate the issuance if the designated policy or policies. It is normally prepared after application ( order) for such policy(ies) of title insurance on behalf of the principals to a real property transaction, for the purpose of facilitating requirements relative to closing and policy issuance in form and content approved by those parties.

If a title policy is not contemplated, a Preliminary Report should not be ordered. Instead, consideration should be given to requesting a Condition of Title Report or other similar title product.

The Preliminary Report states on its face that it is made solely to facilitate the subsequent issuance of a title insurance policy and that the insurer assumes no liability for errors in the report. Accordingly, any claim arising from a defect in title must be made under the title policy and not the Preliminary Report.