One of the most essential documents involved in a commercial title transaction is the preliminary title report. But many people don’t know what’s in a preliminary title report or why it’s so important. In this article, we are going to explain what exactly a preliminary title report is and why it’s so necessary when underwriting title insurance.
The Preliminary Title Report
The preliminary title report is essential in any commercial real estate transaction, as it provides a basic rundown of the chain of title and whether any potential issues exist. When a title company begins the title search process, they go back through the entire historical chain of title for the property being sold or purchased. During this search, the title company is keeping an eye out for any defects in the chain of title that may cloud the title and interfere with the owner’s claim to the property.
Information Included in the Preliminary Title Report
Any preliminary title report includes a bevy of important information, including (but not limited to):
- Existing liens or encumbrances made against the property title
- Property rights that have been previously sold (ex: mineral rights)
- Information about who has title to the property
This report is given to the seller and the buyer of the property before the closing table so that any potential issues can be cleared up before the closing process.
Commercial Partners Title
The experts at Commercial Partners Title have been helping individuals and companies with their commercial real estate deals for several decades. Contact our team of title closers, escrow agents, and underwriters today to learn more about how we can help with your next transaction. We have been recognized as experts in the commercial title industry in Minnesota and across the United States. Contact us today at our downtown Minneapolis offices to learn more about the full extent of our services.