Arizona Mortgage Team

Arizona Mortgage Rates. Refinance FHA, VA and Jumbo Mortgage Loans.

  • Loan Programs
    • FHA Loans
      • FHA 203k Loan
      • FHA Streamline Refinance
      • FHA Kiddie Condo Loan
    • VA Loans
    • USDA Loans
    • HomePath Loans
    • Interest Only Mortgage Loans
    • Refinancing
    • Reverse Mortgages
      • Reverse Mortgage Quote
  • Insurance
    • Arizona Car Insurance
    • Arizona Homeowner Insurance
    • Arizona Life Insurance
    • Arizona Renters Insurance
  • Press
  • Blog

What Is A Preliminary Title Report?

January 28, 2010

What is the Preliminary Title Report?

It can also be called a PTR, Prelim, Title Commitment and just plain Commitment.  All of these terms describe one of the least read (or understood) documents in a typical real estate transaction.

The official definition is “an offer to issue a policy of title insurance covering a particular estate or interest in land subject to stated exceptions.” Translation: If certain criteria are met, then a title insurance policy will be issued.

Since the definition refers to “stated exceptions” that will not be covered, this is an important document for buyers to read and understand about that new home they have under contract.  Lines 94-99 of the AAR Residential Real Estate Purchase Contract direct the escrow company to order and deliver the title report.

The items shown in a Preliminary Title report are:

  • The estate of interest covered
  • The owner of the estate of interest
  • The parcel of land involved (legal description)
  • The exceptions, liens, encumbrances and other risks which will not be insured against if a title policy is issued.

A common lien which will not be insured against (this is one of those stated exceptions) is an existing Deed of Trust (loan) securing the property for the current owner’s lender.  The Escrow Officer will obtain a payoff demand statement from the lien holder and payoff the lien in escrow.  The lien holder will then record with the county recorder a release of that lien, clearing the title of the stated exception.  This process is repeated for all liens and encumbrances that require payoff demand statements.  These could be 2nd mortgages, tax liens, child support liens, etc.

The title report is basically a road map for the Escrow Officer as she works to clear requirements for the buyer and seller so that a title insurance policy can be issued upon close of escrow.

Hopefully this  helps next time you purchase a home…

Remember to read the title report, and if you need help, call your Escrow Officer.

Filed Under: Title and Escrow Tagged With: Prelim, Prelim Title Report, Preliminary Title Report

Recent Items

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Latest News

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Search

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy

Buy Mortgage Leads

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

CLICK TO SEE TODAY'S RATES

Contact Us