Contracts
In New Mexico, a 'preliminary title report' (PTR) provided before closing is best described as:
AA binding title insurance policy
BA report identifying the current state of title and proposed exceptions to coverage before a title insurance policy is issued✓ Correct
CA survey of the property boundaries
DAn appraisal of the property
Explanation
A preliminary title report (or title commitment) summarizes the current state of title, lists proposed Schedule B exceptions, and conditions for issuing title insurance. It is not yet a binding policy but gives buyers and lenders information before closing.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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