Making Sure You Receive Clean Title for Closing...
When property is sold or refinanced, the lender and/or buyer needs a preliminary title report to see exactly what liens and encumbrances are against the property. Items that a preliminary title report show include:
- Easements of record
- Restrictions, covenants, and conditions
- Liens and/or judgments
- Exact vested owner of record
- Legal description
When the sale of the subject property is final and the title company has recorded the necessary documents, they then will issue a policy of title insurance to the new lender and the buyer showing clear title to the property.