Page 16 - CTT buyer Seller 2021_English_Flipbook_1
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The Chicago Title Preliminary Report is an offer to issue a policy of title insurance covering a particular estate or interest in land subject to stated exceptions.
Since these exceptions identify certain items which have been found of public record which affect the title to the property, it is important for all parties to review the report once it is received.
A preliminary report provides a list of the matters which will be shown as exceptions to coverage
in a designated policy of title insurance covering a particular estate or interest in land. It is intended to provide a preliminary response to an application for title insurance and is intended to facilitate the issuance of the requested policy.
The preliminary report states it is made solely to facilitate the subsequent issuance of a title insurance policy and that the insurer assumes
no liability for errors in the report. Accordingly, any claim arising from a defect in the title must be made under the title policy and not the preliminary report.
If a title policy is not contemplated, a preliminary report should not be ordered. Instead, con- sideration should be given to requesting a property profile or other similar title product.
After a title order has been placed, matters relative to the title policy coverage on the subject property are assembled in a title search package and examined by skilled technicians. This is when the preliminary report is prepared and sent
to the customer. The report contains relevant information so that the parties to the transaction will become aware of matters which will not be insured against by the title company. This report is issued before the title policy, hence the name preliminary report.

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