Property Profiles vs. Preliminary Title Reports
There are several steps in the process of purchasing real estate. Reviewing property profile reports and preliminary title reports is an important and necessary step, and it’s important to know the differences between the two products.
What is a Property Profile?
A Property Profile report is a snapshot of the financial and ownership status of a property generated by customer service. It can help determine:
Property Profiles are the quickest method of obtaining a cursory view of the property in question. Information is quick, but not vetted.
A Property Profile package typically consists of the following information:
Preliminary Title Report
What is a Preliminary Title Report (PR)?
A Preliminary Title Report is an offer to issue insurance. It’s a starting point for the title company to eventually issue a policy of insurance. It shows the full ownership of a specific parcel of land, with the liens and encumbrances thereon, together with recorded matters that will be excepted from the policy of insurance if not addressed and removed before escrow closes. Significant time, energy and resources go into producing a PR.
What role does a Preliminary Title Report play in the real estate process?
A Preliminary Title Report lists the conditions under which the title company will issue a particular type of title insurance policy. It shows if anyone, other than the seller, has a legal claim on the property.
The PR may be reviewed and discussed by the parties to the real estate transaction, providing the opportunity to seek the removal of items referenced in the report which are objectionable to the buyer prior to the transfer of title.
The Preliminary Report is not a written historical representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land, it merely reports the current ownership and matters that the title company will exclude from coverage if a title insurance policy should later be issued.
A Preliminary Title Report identifies the following: