Page 10 - Norma Millett Sellers Guide
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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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