What information does a "preliminary title report" provide?

A preliminary title report is a crucial document in real estate transactions, specifically used to inform parties about the current status of a property's title. It primarily provides detailed information regarding the title's status, including any existing liens, encumbrances, and restrictions that may affect the property's ownership. This information is essential for buyers and lenders to assess any potential issues that could impact the transaction or the use of the property.

For instance, if there are outstanding liens from previous owners, they must be resolved before a new buyer can take clear ownership. Furthermore, understanding any easements or restrictions on the property is vital for determining how the property can be utilized. By providing this in-depth information about title status, a preliminary title report helps ensure all parties involved are aware of their rights and obligations associated with the property.

While other choices involve various aspects of real estate, they do not directly relate to the specific function of a preliminary title report.