Question

What is a preliminary title report (prelim)?

1) A report that provides a summary of the current ownership and any liens or encumbrances on a property
2) A report that provides a detailed history of the property's ownership and any legal issues
3) A report that provides an estimate of the property's value
4) A report that provides information on the property's zoning and land use restrictions

Answer 1

A preliminary title report (prelim) is a report that provides a summary of the current ownership and any liens or encumbrances on a property.

Step-by-step explanation:

Answer 2

A preliminary title report provides a summary of the current ownership and any liens or encumbrances on a property.

Step-by-step explanation:

A preliminary title report (prelim) is a report that provides a summary of the current ownership and any liens or encumbrances on a property. It is usually prepared by a title company or an attorney before a property sale is finalized. The purpose of a preliminary title report is to inform the buyer and lender about any legal issues or claims that may affect the property's title.

For example, let's say you want to buy a house. Before finalizing the purchase, the seller would provide you with a preliminary title report that shows the current owner, any outstanding loans or mortgages on the property, and any other claims or encumbrances, such as easements or liens. This report helps you understand the legal status of the property and any risks associated with its ownership.

Therefore, the correct answer to the question is option 1) A report that provides a summary of the current ownership and any liens or encumbrances on a property.