Escrow & Title
In Nevada, what does a 'preliminary title report' (also called a 'title commitment') reveal?
AOnly the current owner's name and purchase price
BThe condition of title including liens, encumbrances, easements, and exceptions before issuing a title insurance policy✓ Correct
CA guaranteed clean title with no exceptions
DOnly public utility easements on the property
Explanation
A preliminary title report (or title commitment) is issued by a title company after a title search. It discloses the current vesting, all liens (mortgages, taxes, judgment liens), easements, CC&Rs, and other encumbrances. It lists what will be excluded from (or conditions to) the final title insurance policy. In Nevada, buyers review this during escrow to identify any title issues that must be cleared before closing.
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