Terms of art

[mpallamary]

Howdy all,

I have a question about some terms surveyors use. There are various kinds of title documents including a "preliminary title report." There are some abbreviation/alternate names for these including "title report," "preliminary report," and "prelim." Does everyone agree and, are there other similar terms surveyors use?

This is not to be confused with a "policy of title insurance."

Thanks

[Jason Kinnie]

Also "PTR"

Also not to be confused with a "Commitment for Title Insurance" or "Proforma Policy"

[mpallamary]

Excellent! Yes, thanks!

[Jim Frame]

They're all common terms, but they don't all refer to the same thing.

A preliminary report isn't intended to be comprehensive -- it's what the title company can spit out without doing any real work, likely a rehash of a predecessor report for the same property.

A title report seems to be a notch better, someone at the title company looked it over and updated it with some obvious changes.

A title commitment means the company is willing to insure the property as written, so the report got a closer look -- maybe even by someone experienced in title examination -- before being released.

None of them are very reliable, in my experience. The quality of title reports has gone down dramatically in the last 30 years.

[mpallamary]

Yes, and I agree!

There is no protection under a preliminary title report/title report per the Insurance Code, following a lawsuit years ago.

**********************************
INSURANCE CODE - INS

ARTICLE 1. Definitions [12340 - 12342] ( Article 1 repealed and added by Stats. 1973, Ch. 1130. )
“Preliminary report”, “commitment”, or “binder” are reports furnished in connection with an application for title
insurance and are offers to issue a title policy subject to the stated exceptions set forth in the reports and such other
matters as may be incorporated by reference therein. The reports are not abstracts of title, nor are any of the rights,
duties or responsibilities applicable to the preparation and issuance of an abstract of title applicable to the issuance of
any report. Any such report shall not be construed as, nor constitute, a representation as to the condition of title to real property, but
shall constitute a statement of the terms and conditions upon which the issuer is willing to issue its title policy, if such offer is
accepted. (Added by Stats. 1981, Ch. 55, Sec. 2.)
*******************************************
Here is what I came up with doing an Internet search:

Preliminary Report
a report showing the current status of a property and the condition under which a title company is willing to insure title as of a specified date

https://sandygadow.com/title-insurance-glossary/

Title reports are the result of extensive searches in various official record indices, intended to provide an overview of the ownership chain, encumbrances on the property and any other relevant documents pertaining to the history of the title as recorded in the official records. Title reports are typically ordered by real estate investors, attorneys, bank-owned resale divisions and title agents.
https://www.datatracetitle.com/title-re ... %20records.

What Is A Title Report?
A title report is a document that outlines the legal status of a property and related information on its ownership. There are several key components that must be included in a title report. This includes information on the county, zoning laws, property value, and current tax information. Title reports will also feature a full, legal description of the property. In many cases a sample title report will include paperwork on the chain of ownership, unreleased or open mortgages, judgement dockets against prior or current owners, and supplemental information within the scope of search. For a full title report sample, be sure to read this example provided by Free and Clear.

https://www.fortunebuilders.com/what-is-title-report/

Title Report - An Overview
A title report, also known as a title commitment or binder, is the document containing the results of the title search, which is required by most mortgage lenders and mortgage insurers. It is sometimes called a title commitment because it is a promise to issue a title insurance policy. The report contains the information you and the title insurance company need to make its decision.
• The parcel of land in question called the "estate"* or the interest covered.
• The owner of record for the estate or interest.
• The legal description of the parcel of land.
• Any requirements or notes about the property.
• A listing of easements, liens, encumbrances, and other information affecting the title to the property as of the time and date of the report.

https://info.courthousedirect.com/blog/ ... tle-report

• Title Report Overview
Preliminary Title Report

The settlement agent orders a title report, sometimes referred to as a title search or title abstract, from a title company. In certain states, including in the South and Northeast, the title abstract is prepared by a real estate attorney. In short, the title report makes sure that the property you are buying actually matches the property you have agreed to purchase in terms of property lines, type, ownership, zoning and any easements. An easement is a right to use the property by a third party, typically involving a local utility company.
A title company or attorney examines county records to determine the legal ownership of the property. Additionally, the title report identifies exceptions to title, or items that are not covered by the title insurance policy the title company issues. Exceptions to title include any easements or outstanding liens against the property such as a first or second mortgage or pending or past due property tax bill. Existing mortgages on a property are permitted exceptions because they are usually paid off when the property is sold so the lender releases the lien.
The title report makes sure that there are no current liens against the property, such as an outstanding property tax bill or ownership dispute that could interfere with a clear title transfer of the property. All of this information is included in the title report (or title search or abstract) provided to you by the title company or attorney. A clear title report indicates that the property is free of all liens and clears the way for transferring the property from the seller to the buyer at mortgage closing.
https://www.freeandclear.com/guides/mor ... tgage.html

title report
n. the written analysis of the status of title to real property, including a property description, names of titleholders and how title is held (joint tenancy, etc.), tax rate, encumbrances (mortgages, liens, deeds of trusts, recorded judgments), and real property taxes due. A title report made when the report is ordered is called a "preliminary report," or a "prelim," and at time of recording an up-to-date report is issued which is the final title report. The history of the title is called an "abstract." A title report is prepared by a title company, an abstractor, attorney, or an escrow company, depending on local practice. Normally a title report's accuracy is insured by title insurance which will require the insurance company to either correct any error or pay damages resulting from a "cloud on title," encumbrance or title flaw in the title which was not reported. (See: title, cloud on title, title insurance, abstract)

https://legal-dictionary.thefreediction ... tle+report

Generally, there are two main types of title searching, a full coverage search and limited coverage search; other types include non-insured reports and foreclosure guarantee search.
It is often the case that people choose to contact a title company or attorney to conduct an exhaustive title search. The process of performing a title search involves accessing the official land records for the subject property. Each record is a document evidencing an event which occurred in the history of the property. A deed records an event of property transfer, a mortgage documents the collateral interest of a home loan, and a lien documents a claim against the property in favor of another, such as a creditor, vendor, or tradesman. The objective of the title search is to establish clear, marketable title by exposing any outstanding claims prior to transfer of title.
Each recorded document must name the parties involved, e.g., grantor and grantee. The grantor is the party transferring away a property right, and the grantee is receiving a property right. In the case of a deed the grantor would typically be the property seller, and the grantee the buyer. A mortgage grantor or mortgagor is the borrower of the loan, since they are giving away certain property rights to the mortgagee, lender, or mortgage grantee. More recent wording simplifies this language with "Borrower" and "Lender."
The records are kept in a centralized government office, usually at the county courthouse (in states with strong county governments such as Washington State or Massachusetts, the title on the door would be something like Registrar of Deeds or County Recorder); or in the municipal offices (in small states such as Connecticut, Vermont, and Rhode Island), often the title searcher must go to each individual town or county office to research the title.
The process of a title search begins with searching for and retrieving each physical document from the books which contain them. Every document is recorded by date in a special set of volumes called by various names such as Grantor-Grantee index, Land Records or Deed Records), which may or may not be digitized or scanned into a searchable file, depending on the financial resources of the county or town. An official stamp located usually at the bottom of the first page gives the name of the recording official, date, time, book and page number. If the document has been recorded, this stamp will ALWAYS be there.
The collected documents are then reviewed and analyzed to see how each affects the property, and which documents have been released by subsequent recordings. Contingent conditions within documents such as life estates and remainder interests may exist within the document language. This process is often performed by a trained professional called a title abstractor. Some title abstractors have certifications documenting their experience level and training and successfully having passed an exam.
The document produced by a title abstractor is called a title abstract, or abstract of title. This is not a document which exists in public records, but it is derived from recorded documents. The title abstract is provided to the title company, attorney, or end-user by the abstractor.
For example, a title report may also show any easements, or recorded encumbrances against the property or portions of the property. A previous owner may have legally given a neighbor the right to share the driveway, or the city may have a right to strips of the property for putting power lines, communication lines, water pipes, or sewer pipes. A few on-line services offer title searches for relatively little cost, and their accuracy is not inferior to what a title company or attorney will offer; however on-line businesses rely mostly on electronically available information, and for that reason could at times be limited both in completeness and geographical availability.

https://en.wikipedia.org/wiki/Title_search

Well, hello everyone. This is Tyler Ford with eXp Realty, Tucson, Arizona and I’m with Eric Schroeder at Fidelity. He oversees the Fidelity operation here in Tucson. There is a subject matter that I’ve been wanting to talk about, because there’s confusion. And to be honest, at times I’m a little confused. And that is what we call the title report process of a real estate transaction. So first off, one of the questions that I have for you, Eric, is there’s title commitment, prelim, preliminary title report. Are those like one in the same, or are they different things?
Eric Schroeder: They’re the same thing.
Tyler Ford: Same thing?
Eric Schroeder: Yeah. They’re exactly the same thing. Lenders typically, and real estate agents will refer to it as a prelim. We all on this side of the business know it’s the same thing. But the actual term for it is a commitment for title insurance.
Tyler Ford: Okay. So, what is a prelim? Just tell us like broad brush, what it is. And then more importantly, we’re going to go into how to read it, because that’s the real confusion is. Why is it so important?
Eric Schroeder: Absolutely. A preliminary title report, like I said, the commitment for title insurance, I mean it’s essentially a document that sounds kind of like it’s headed. It is the title insurance company’s commitment to issue title insurance policies upon the successful closing of a transaction and the satisfaction of any requirements within it. We’ll talk a little bit more about what those requirements may be. But it’s essentially an upfront look of what a title policy is going to contain before you close the deal.
How Do You Read a Title Report?

https://www.tucsonhomesandlots.com/how- ... le-report/

title report

1. A report that discloses whether there are any competing claims, liens or other problems relating to a property. This must be done before title insurance is issued. Also known as a "Preliminary Title Report" or "Prelim."

https://www.superbrokers.ca/library/glo ... report.php

[mpallamary]

Thanks Jim!

[LS_8750]

I have a Condition of Title Guarantee where following receipt I didn't spend more than 15 minutes to locate an encumbrance on the property that the title company missed.

Maybe there is a little cottage industry where those knowing what to look for can just sniff out title issues, get a Condition of Title Guarantee issued and then file claims and collect. The easy part is in finding the title issues, the hard part is collecting. Best I can do is gain some leverage to get them to do their job.

[Peter Ehlert]

Insurance!
it's like going to Vegas, the house setting the odds at the different games, pretty enticing.
It all comes out OK, lots of spare change for glitter.

[mpallamary]

Yes, like Vegas!

[LS_8750]

spare change for glitter. Ha.

I'll take odds against those title companies any day.