What does the Preliminary Title Report help parties understand?

The Preliminary Title Report serves a crucial role in real estate transactions by detailing the current ownership status of a property, along with any liens or encumbrances that may exist. This report provides an overview of who holds title to the property, ensuring that the prospective buyer is aware of the legal ownership and can confirm that the seller has the right to sell the property. Additionally, the report will reveal any outstanding mortgages, easements, or other claims that could affect the buyer's rights to the property. Understanding these elements is essential for any party involved in a real estate transaction because it helps them assess the risks and obligations associated with the property they are considering.