Title Report
A title report is a detailed document that shows the current ownership status of a property and identifies any liens, encumbrances, or other issues that affect the title. This preliminary report is typically issued before closing and serves as the basis for determining what will be covered by title insurance.
Example
“The title report revealed two outstanding liens and an easement that wasn't disclosed in the listing.”
Memory Tip
A title report is like a property's report card - it shows all the grades (good and bad) from its ownership history.
Why It Matters
Title reports allow buyers and lenders to identify and address any title issues before completing the purchase, ensuring they know exactly what they're acquiring. This document helps prevent surprises at closing and allows time to resolve any discovered problems.
Common Misconception
Some people believe a title report guarantees a clean title, but it only reflects information available in public records and may not reveal all potential issues.
In Practice
The preliminary title report showed that the property had an active homeowners association lien for unpaid dues, which the seller agreed to pay as a condition of the sale contract.
Etymology
From Latin 'reportare' meaning 'to carry back,' as it carries back information about who owns the property and what claims exist against it.
Common Misspellings
Compare the best financial products for you
More in legal
Other legal terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.