Which statements about the preliminary title report are accurate?

• A. All of these.
• B. It is essentially a report of conditions discovered that affect title.
• C. May often contain items that require resolution or elimination before the title policy will be issued.
• D. Reveals the extent of coverage protection and any exclusion to it.

Answer: (A)

A preliminary title report is a working document that shows conditions found to affect the title and the steps needed to insure the property. It lists recorded matters such as liens, encumbrances, easements, and potential defects in the chain of title, plus who owns the present title. Because these issues can influence whether title can be insured, the report often points out items that must be resolved or cleared before the title policy can be issued. It also explains the scope of protection the title policy will provide and any exclusions that will apply. Putting all of this together, every described aspect is accurate: it’s a report of conditions affecting title, it may require resolution before policy issuance, and it reveals the coverage and exclusions of the policy.