Escrow & Title
In South Dakota, the purpose of a 'preliminary title report' provided before closing is to:
AGuarantee clean title to the buyer
BShow the current condition of title including any existing encumbrances and exceptions✓ Correct
CReplace the need for a full title search
DServe as the final title insurance policy
Explanation
A preliminary title report (or title commitment) shows the current state of title, including existing liens, encumbrances, easements, and conditions that will appear as exceptions in the title insurance policy. It gives all parties the opportunity to resolve title issues before closing.
Related South Dakota Escrow & Title Questions
- In South Dakota, an 'abstract of title' is:
- In South Dakota, the register of deeds charges a recording fee based on:
- In South Dakota, which of the following encumbrances does NOT need to be removed to deliver 'clear title'?
- In South Dakota, a 'deed in lieu of foreclosure' is an arrangement where:
- A title search is conducted primarily to:
- In South Dakota, a 'buyer's closing costs' typically include all of the following EXCEPT:
- In South Dakota, which type of deed provides the buyer with a warranty that the grantor has not done anything to impair the title during the period they owned the property, but provides no warranty about prior owners?
- In a real estate closing, proration is used to:
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