Escrow & Title

What is the primary purpose of a preliminary (pre-closing) title report?

ATo guarantee title is clear before closing
BTo inform buyers and lenders of all recorded interests, liens, and exceptions affecting title before the transaction closes✓ Correct
CTo replace the title search
DTo certify the property's condition

Explanation

A preliminary title report discloses all recorded interests, liens, easements, exceptions, and other matters affecting title before closing. This allows parties to identify and resolve title issues before the transaction is finalized.

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