Preliminary Title Report: What It Is, Why It Matters & How to Get It
January 26th, 2026
Buying or selling real property is one of the biggest financial decisions most people ever make. Yet many buyers and sellers move through a real estate transaction without fully understanding one of its most important documents: the preliminary title report. If you’ve ever asked yourself, “What does a preliminary report mean?” or “Do I really need one?”, you’re not alone.
This document is often misunderstood, glossed over, or confused with title insurance, even though it plays a critical role in protecting everyone involved. In this guide, we break down everything you need to know about a preliminary real estate title report – what it is, why it matters, what it contains, how it differs from title insurance, who orders it, and how to get one, including specific details for California buyers and sellers.
The preliminary title report offers you the chance to review matters affecting your property before purchase which will be excluded from coverage under your title insurance policy unless removed before purchase.
What Does “Preliminary Report” Mean in Real Estate?
The report is prepared by a title company after conducting a detailed title search of the public record. It outlines what the title company currently knows about the property – who owns it, what legal claims exist against it, and what conditions must be resolved before ownership can legally transfer.
Think of it as a warning system. It doesn’t guarantee anything, but it highlights potential issues so they can be addressed early, helping prevent surprises, disputes, or closing delays later.
So, What Is a Preliminary Title Report (PTR)?
A preliminary title report, often called a "prelim," is a document issued by a title insurance company that summarizes the current state of a property’s title. It shows:
- Who the current owner is
- How the property is legally described
- Any liens, loans, or legal claims against the property
- Easements, covenants, conditions, and restrictions tied to the parcel of land
- Requirements that must be satisfied before a title insurance policy can be issued
This report is based entirely on information found in the public record, such as deeds, trust documents, court filings, and recorded maps. It does not insure the title. Instead, it lays the groundwork for issuing a future title policy by identifying issues that must be cleared or accepted.
Why a Preliminary Title Report Matters
The preliminary title report is a cornerstone of due diligence in any property purchase. Ignoring it (or not understanding it) can expose buyers and sellers to serious risk.
It Confirms Property Ownership
The report verifies property ownership by listing the owner's name exactly as it appears on recorded documents. This ensures the person selling the property has the legal authority to do so. If ownership information is incorrect, or if multiple parties hold an estate or interest in the property (such as joint possession or a declaration of co-ownership), the transaction could be delayed or invalidated.
It Reveals Legal and Financial Issues
A preliminary title report discloses:
- Outstanding property taxes
- Existing deeds of trust or mortgages
- Recorded liens
- Legal claims or ownership claims
- Court judgments affecting the property
These issues can impact a buyer’s ability to take a clean title and may need to be resolved before closing.
It Prevents Costly Surprises
Many buyers don’t realize that homeowner's association (HOA) rules, zoning restrictions, or easements could limit how they use the property. Reviewing the report early allows buyers to make informed decisions or renegotiate terms before they’re financially committed.
Supports Market Value
Regardless of market trends and conditions, properties with a clear, marketable title tend to hold value better. A preliminary title report confirms whether a property can be transferred without legal friction.
From a buyer’s perspective:
- Fewer title issues = lower risk
- Lower risk = stronger confidence in the price
From a lender’s perspective:
- Clean title = smoother underwriting
- Fewer delays = faster closing
That confidence helps support property value in any market cycle.
What Does a Preliminary Title Report Look Like?
At first glance, a preliminary title report can feel overwhelming. It’s dense, formal, and filled with legal language. But once you know what to look for, it becomes much easier to understand.
Key Sections You’ll See
1. Property Information
This section includes the property profile, address, assessor’s parcel number, and a formal legal description that defines the exact property boundaries.
2. Ownership Details
Lists the current owner(s), how they hold title, and whether the ownership structure involves trust documents, joint possession, or other arrangements.
3. Vesting and Estate Information
Shows how the owner holds their estate or interest in the real property.
4. Exceptions and Requirements
This is the most important section. It lists liens, easements, covenants, conditions and restrictions, zoning laws, HOA rules, and any unresolved legal claims.
5. Recorded Documents
References deeds, deeds of trust, declarations of co-ownership, and other filings tied to the parcel of land.
Who Is Responsible for Ordering the Preliminary Title Report?
Typically, the preliminary title report is ordered by the escrow company, such as Lightspeed Escrow or the real estate agent handling the transaction. The report is prepared by the title insurance company selected for the deal. Within the escrow process, the escrow officer coordinates with the title officers to ensure all requirements listed in the report are addressed before closing.
Buyers and sellers should review the report carefully and ask questions. While professionals facilitate the process, understanding the report is everyone’s responsibility.
Understanding the Fine Print: Legal Description and Property Boundaries
The legal description is not the same as the street address. It precisely defines the boundaries of the real property using recorded maps or survey references. This matters because legal descriptions control what is legally transferred during a property purchase.
Errors here can lead to boundary disputes or ownership challenges. A title officer relies on this description to ensure the correct parcel of land is insured under the future title insurance policy.
Covenants, Conditions, and Restrictions (CC&Rs)
Many properties, especially condos and planned communities, are subject to covenants, conditions, and restrictions.
These recorded rules may regulate:
- Exterior modifications
- Rental limitations
- Parking restrictions
- Use of common areas
CC&Rs are enforceable legal agreements. Buyers should review them carefully to ensure they align with their intended use of the property.
Zoning Restrictions and Zoning Laws
Zoning laws dictate how a property can be used. The preliminary title report may reference zoning restrictions that affect:
- Residential vs. commercial use
- Building height or density
- Additions or renovations
Even if a property appears suitable for your plans, zoning restrictions may say otherwise. This is especially important for investors and buyers planning remodels or additions.
Preliminary Title Report vs. Title Insurance: What’s the Difference?
This is one of the most common points of confusion. It’s important to understand that a preliminary title report is not the same thing as title insurance. It simply discloses what a title insurance company finds during its title search – it does not provide protection. In detail:
A preliminary title report (PTR) is an offer to insure and an outline of potential title issues before closing, showing current ownership, liens, and restrictions that won't be covered, while title insurance is the actual policy issued after closing, providing financial protection against covered title defects that arise later, as the PTR is not coverage and carries no liability.
The preliminary title report informs, while title insurance protects.
Preliminary Title Report
- Issued before closing
- Based on a title search
- Discloses known issues
- Does not insure anything
Title Insurance
- Issued at closing
- Provides financial protection
There are two main types:
- Owner’s title policy
- Lender’s title policy
Once issued, the title policy ensures that if certain ownership claims or legal issues arise, the insured party is protected according to policy terms.
According to the California Department of Insurance, title insurance is designed to protect buyers and lenders from certain losses caused by defects in a property’s title that were unknown at the time of purchase. Coverage only begins once a title insurance policy is issued at closing, not when the preliminary title report is delivered.
This distinction is critical because many buyers mistakenly believe the preliminary report itself offers protection, when in reality it is an informational document meant to support informed decision-making and due diligence.
How to Get a Preliminary Title Report (General Process)
In most transactions, you won’t need to order the report yourself. Here’s how it usually works:
- Escrow is opened
- A title company is selected
- A title search is conducted
- The preliminary title report is issued
- Buyers and sellers review it during due diligence
If issues are found, they are resolved before closing to prevent delays or disputes.
How to Get a Preliminary Title Report in California
In California, a PTR isn't fundamentally different in purpose from other states. The process is similar, although state-specific regulations, typical transaction timelines, and standard policy details can vary.
Once escrow is opened, the title insurance company issues the preliminary title report as required by California law. Buyers are given time to review the report and raise objections. California reports often include detailed references to:
- Property taxes
- Deeds of trust
- HOA rules and zoning
- Trust documents
- Recorded easement
In essence, California's PTR process is highly regulated for speed and detail, making it distinct from the approach in many other states (like New York, where preliminary commitments tend to be issued later in the transaction), emphasizing early discovery and resolution of title issues.
Common Issues Found in Preliminary Title Reports
Some of the most common red flags include:
- Unpaid property taxes
- Old liens that were never released
- Errors in ownership information
- Missing trust documents
- Discrepancies in legal descriptions
Catching these early helps avoid closing delays and costly disputes. This is why the preliminary title report is a critical part of due diligence, and confirming that the property you’re buying can legally be transferred to you without unresolved issues. It provides transparency and protects buyers from inheriting problems, and helps sellers clear issues before they derail a deal.
How Escrow Ties It All Together
The preliminary title report doesn’t exist in a vacuum. It’s part of a coordinated effort between escrow, title, agents, and lenders to ensure a smooth closing. An experienced escrow officer ensures that:
- Title conditions are satisfied
- Required documents are properly recorded
- Funds and documents move securely and on time
Getting a Preliminary Title Report in California: How Lightspeed Escrow Makes a Difference
Understanding a preliminary title report empowers you to make smarter, safer real estate decisions. But having the right professionals guiding you throughout the process makes all the difference. Lightspeed Escrow is a full-service escrow company founded by real estate experts. Whether you prefer online transactions or in-person service at our local Southern California locations, Lightspeed Escrow meets you where you are.
With over 20 years of real estate experience, knowledgeable bilingual professionals, and a mission rooted in trust and clarity, Lightspeed Escrow ensures every detail – especially critical documents like the preliminary title report – is handled with care. When you’re navigating something as important as a property purchase or sale, having an escrow partner who understands the details and explains them clearly ensures your peace of mind.
Get in touch today to speak to an expert.
