The preliminary title report indicates which of the following?

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A preliminary title report describes the current status of the property's title and, crucially, the conditions under which a title insurance policy will be issued to the buyer. It shows who holds title, what encumbrances or defects exist (liens, easements, restrictions, judgments, etc.), and which items will be excluded from coverage or must be cleared before closing. This is why the statement about the title insurer’s terms for insuring the buyer’s title is the best fit. It isn’t about lender loan approval, and it doesn’t specify a policy to the seller—the typical policy involved is the buyer’s (and often a lender’s) title insurance, based on what the preliminary report reveals.