Property Profiles vs. Preliminary Title Reports

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There are several steps in the process of purchasing real estate. Reviewing property profile reports and preliminary title reports is an important and necessary step, and it’s important to know the differences between the two products.

Property Profile

What is a Property Profile?
A Property Profile report is a snapshot of the financial and ownership status of a property generated by customer service. It can help determine:

The owner of the property
The loans and liens that may exist on the property

What is the benefit of a Property Profile in a real estate transaction?
Property Profiles are the quickest method of obtaining a cursory view of the property in question. Information is quick, but not vetted.

A Property Profile package typically consists of the following information:

Comparable market analysis
Vesting deed/current owner
Open deeds of trust/mortgages
Plat map of the property
Tax status for current year
HOA liens
City liens
Solar agreements *
UCC financing statement *
Any other document recorded on the property *

* When specifically requested.

Preliminary Title Report

What is a Preliminary Title Report (PR)?
A Preliminary Title Report is an offer to issue insurance. It’s a starting point for the title company to eventually issue a policy of insurance. It shows the full ownership of a specific parcel of land, with the liens and encumbrances thereon, together with recorded matters that will be excepted from the policy of insurance if not addressed and removed before escrow closes. Significant time, energy and resources go into producing a PR.

What role does a Preliminary Title Report play in the real estate process?
A Preliminary Title Report lists the conditions under which the title company will issue a particular type of title insurance policy. It shows if anyone, other than the seller, has a legal claim on the property.

The PR may be reviewed and discussed by the parties to the real estate transaction, providing the opportunity to seek the removal of items referenced in the report which are objectionable to the buyer prior to the transfer of title.

The Preliminary Report is not a written historical representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land, it merely reports the current ownership and matters that the title company will exclude from coverage if a title insurance policy should later be issued.

A Preliminary Title Report identifies the following:

Title defects, liens of record or encumbrances that must be satisfied prior to issuing a title insurance policy
Legal and equitable ownership
Covenants, Conditions and Restrictions (CC&Rs) or recorded restrictions which have been placed in a prior deed or contained in recorded documents
Detailed easement information
Thorough real property tax information
Status of the property
Possible lien items that need to be cleared prior to the close of escrow

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