Maryland Title Insurance Producer Practice Exam

A preliminary title report serves as an initial assessment of a property's title status before a closing transaction. Its primary purpose is to provide relevant parties, such as buyers and lenders, with information regarding any potential issues or encumbrances that might affect the title of the property. This report includes details such as ownership information, any existing liens, easements, and other claims against the property.

Understanding the preliminary title report is crucial in real estate transactions, as it helps to flag any problems that may need to be resolved prior to closing. This proactive step is essential for ensuring that the buyer receives a clear and marketable title, free of unforeseen complications that could arise after the sale is finalized.

While the report may mention various encumbrances, its comprehensive nature sets it apart from a report solely focused on encumbrances or a final report that confirms title transfer, as those would not provide the full context of the title's current standing before the transaction is completed.