What type of issues might a preliminary title report identify?

A preliminary title report is a critical document in real estate transactions that provides an overview of the title status of a property before closing. This report is designed to identify any legal issues that could affect ownership, such as encumbrances or restrictions on the property.

Legal encumbrances and restrictions, which include things like liens, easements, and other claims against the property, must be disclosed in a preliminary title report. These factors can significantly influence a buyer's decision to proceed with the purchase, as they may affect the property's value or restrict how the property can be used. Understanding these elements is vital for both buyers and sellers to ensure a smooth transaction and avoid future legal disputes.

In contrast, property market trends, technical building specifications, and homeowner acceptance rates are not typically included in a preliminary title report. These factors might be relevant in other aspects of real estate, such as market research or property appraisal, but they do not pertain directly to the legal status of a property's title. Therefore, the identification of legal encumbrances and restrictions is the fundamental purpose of a preliminary title report.