When would a preliminary title report typically be prepared?

A preliminary title report is typically prepared when escrow is opened. This document serves as an important tool in the real estate transaction process, as it outlines the current condition of the title to the property. It identifies any potential issues, such as liens, encumbrances, or claims against the property, allowing the buyer and seller to address these matters before finalizing the transaction.

Timing is crucial in real estate transactions. The preliminary title report is generated at the start of escrow to ensure that everyone involved is aware of the title status right from the beginning. This proactive approach helps avoid complications or surprises later on, especially as the closing date approaches. Recognizing the title's status early in the process is essential for both buyers and sellers to make informed decisions and ensure a smoother transaction.

In contrast, preparing the report at other points, such as after the buyer's offer is accepted or just before closing, would not provide the necessary information for due diligence in the early stages of the transaction.