What is a preliminary title report (prelim) in California?
A preliminary title report in California is a document prepared by a title company that shows the current ownership, liens, and recorded encumbrances on a property before a real estate transaction closes. It helps buyers, sellers, and lenders understand what issues must be cleared before the title can be insured.
If you’re buying or selling a home in Southern California, you’ll likely hear your agent or escrow officer mention the preliminary title report, often called the “prelim.” It’s an essential part of every real estate transaction, serving as a preview of what a title company will insure once the deal closes. Understanding this report is key to ensuring a smooth closing and securing your title insurance policy without unexpected delays.
Understanding the Preliminary Title Report
A preliminary title report (or “prelim”) is a detailed statement issued by a title company before issuing a title insurance policy. It summarizes the property’s current ownership, any recorded liens, easements, restrictions, or encumbrances, and identifies potential issues that must be resolved before closing. Because of this, it serves as both a legal and informational tool for everyone involved in the transaction.
Why the Preliminary Title Report Matters in California Real Estate
For home buyers, the prelim provides peace of mind by showing whether the property has clear ownership and no outstanding claims. For sellers, it reveals any surprises, like unpaid taxes or liens, that might delay or derail closing. And for lenders, it ensures their loan will be properly secured by the property.
In Southern California’s competitive markets, such as Ventura, Santa Barbara, Oxnard, and Thousand Oaks transactions often move quickly. Having an accurate and timely preliminary title report helps everyone involved avoid closing delays and costly errors.
Key Sections of a Preliminary Title Report
| Section | Description |
| Ownership Information | Shows the current vested owner(s) of record. |
| Legal Description | Defines the property boundaries and parcel number. |
| Liens & Encumbrances | Lists any mortgages, tax liens, or judgments that must be cleared. |
| Easements | Details rights granted to others to use portions of the property. |
| CC&Rs | Outlines community or HOA rules affecting ownership. |
| Exceptions | Identifies items not covered by the title insurance policy unless resolved. |
Common Title Issues Found in a Prelim
Even in newer properties, a prelim can uncover issues such as unpaid property taxes, undisclosed easements, or outdated deeds. For example, a previous owner may have refinanced but never released an old mortgage, creating a cloud on title. Because of this, resolving these items before closing is critical.
How 805title Simplifies the Preliminary Title Process
At 805title, we work closely with agents, buyers, and sellers to review each preliminary title report in detail. Our experienced title officers explain every section in plain language, identify potential red flags, and guide clients through the resolution process. Because we focus on Southern California properties, we understand the unique recording requirements in counties like Ventura, Los Angeles, Santa Barbara…
What Happens After You Receive Your Prelim
Once you receive your prelim, review it carefully with your real estate agent or escrow officer. If you spot something unexpected, such as an old lien or incorrect owner name, notify your title representative immediately. In most cases, these issues can be resolved quickly before your final title insurance policy is issued.
Trusted Guidance from 805title
Whether you’re buying, selling, or refinancing, 805title provides the clarity and expertise you need to navigate the title process with confidence. Our local knowledge and commitment to customer care make us a trusted title insurance partner across Southern California. Learn more about our services or contact our team today to get your preliminary title report started.
For official guidance, visit the California Department of Insurance to understand title insurance regulations.
Final Thoughts
A preliminary title report isn’t just paperwork, it’s your roadmap to a successful closing. By reviewing your prelim early and working with a knowledgeable title company like 805title, you can prevent surprises, protect your investment, and move confidently toward homeownership.
Ready to get started? Contact 805title today for expert help reviewing your preliminary title report and securing your title insurance in Southern California.