Page 10 - Ken Wooten Sellers Guide

Commitment
Commitment for Title

(Also called a PRELIMINARY TITLE REPORT, “PRE" OR “PRE-LIM”)

The name PRELIMINARY REPORT (“Pre” or “Pre-lim”) has its origin
because it is issued prior to the close of escrow and the issuance of the
policy of title insurance. A preliminary report sets out the conditions of title
based upon an examination of the public records for a particular parcel of
land, as of the date searched. Even though a buyer may be unaware of the
importance of obtaining a title insurance policy, it is a requirement of the
lender. Prior to a lender “funding” a loan, they require a preliminary report
showing the condition of title. The lender will review the report and give
his/her approval of the exceptions (items against the property) which will
appear on the final title policy. The lender needs to protect “their interest”
by making sure their position is not threatened by other liens or
judgements. Once the real estate agent has a signed contract, it is time to
“open escrow”, which will generate a “Preliminary Title Report”. Now the
order is “open” and matters of record relative to the title on the subject
property are assembled in the title search and examined by skilled Pioneer
Title technicians. The preliminary report is then typed and sent to the real
estate agents with a copy for the clients and a copy is sent directly to the
Purchaser’s lender.

Pioneer Title Agency

COMMITMENT TO SERVICE

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