Preliminary reports are valuable documents that establish the legal ownership of a property. Review this report closely with your title representative to ensure a free and clear title.

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A preliminary report shows:

  • A detailed legal description of the property
  • Any liens or outstanding debts against the property
  • Any restrictions concerning the use of the property

preliminary reportsReview Any Restrictions

What kind of restrictions would be on a residential property? If you live in an HOA, you may not be able to add things like a pool, or a decorative windmill in your front lawn. These restrictions are detailed in the preliminary report so you are aware of the property’s limitations before you commit to it.

Ensure Free & Clear Titles

Your title company will investigate the property to verify that the title is clear. If the home is in a trust, the seller must have the authority and right to sell the home. If issues are found, your title company will work with you to resolve the problem.

If there are unpaid taxes on the home, they too will show up in the preliminary report.

Work With A Professional

Preliminary reports may be confusing for the average homeowner to read so it is highly recommended that you work with a professional to review your report. They will be able to answer questions you have and guide you through the process of removing any liens or claims on the property.

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The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.