What information is typically included in a Title Report?

A Title Report is an important document in real estate transactions that details the status of a property’s title. It primarily serves to inform potential buyers, lenders, and other interested parties about the legal ownership of the property, any defects, liens, or encumbrances that may affect ownership rights.

The inclusion of defects and encumbrances of record in a Title Report is crucial. This information reveals any outstanding mortgages, liens, easements, or other claims against the property that could impact the new owner's rights or the property's marketability. By disclosing these issues, the Title Report allows all parties involved to understand the potential risks associated with the title and to take appropriate actions, such as seeking title insurance or negotiating repairs or settlements, to address any issues before closing a transaction.

The other options do not accurately reflect the content of a Title Report. A list of available properties in the area or a valuation of the property’s market price is not typically part of this document. A summary of title insurance policies might be relevant in conjunction with a Title Report, but it is not a standard inclusion in the report itself. Therefore, recognizing defects and encumbrances provides the foundational legal context critical to making informed decisions in property transactions.