What is Prelim?
The title company quizzes the seller, digs into public record, finds all that they can on the current state of the title. Then they issue a preliminary title report or “prelim”. At closing, the title insurance company is going to issue insurance policies, insuring that your ownership and your lender’s lien are legally valid.
This report includes all available information on the title, listing liens and exceptions and providing copies of any relevant documents (neighborhood blaws, covenants, conditions and restrictions or CC&Rs, easements and more).
The prelim also contains a judgment and lien search on you and the seller. Any financial obligations that are a matter of public record become part of the title report. Child support and IRS or state tax liens are common examples.
If you have questions about any part of your prelim, talk to your real estate agent and your title officer.
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