What You Need To Know About Preliminary Title Reports

When you’re selling your house there’s a lot to think about. One thing that gets overlooked is the preliminary title report. But this report is important especially if you need to sell your house fast or your property needs work. Let’s get into what these reports are all about and why they matter even if you’re working with cash home buyers in Fox Point or anywhere in Milwaukee.

What a Preliminary Report Shows A Homeowner

A preliminary title report is like a background check for your house. It’s a document that shows you and potential buyers the current state of your property’s title. Here’s what you’ll find in this report:

1. Who owns the property: This might seem obvious but it’s good to have it in writing. The report will show your name as the current owner. If there are multiple owners like in the case of a married couple or business partners, all names should be listed.
2. Legal description: This is a detailed description of where your property is located and its boundaries. It’s more specific than just your street address. The legal description might include information like lot numbers, block numbers, and references to recorded maps or surveys.
3. Property taxes: The report will show if you’re current on your property taxes or if there are any unpaid taxes. This is important because unpaid taxes can result in a lien on the property which can complicate the sale.
4. Liens: If anyone has a legal claim on your property because of unpaid debts it will show up here. This could be things like unpaid contractor bills or a second mortgage. Liens can be a big issue when selling a house so it’s good to know about them early.
5. Easements: These are rights that others might have to use part of your property. For example, if there’s a shared driveway or if the utility company has the right to access your yard. Easements can affect how a new owner can use the property so it’s good to know about them.
6. Restrictions: There might be rules about what you can do with your property. These could be from your neighborhood association or local zoning laws. For example, there might be restrictions on the type of fencing you can install or the color you can paint your house.
7. Encroachments: This is when something from a neighboring property crosses over onto yours like a fence or part of a building. Encroachments can lead to disputes so it’s good to know about them before selling.

Knowing what’s in this title report can help you avoid surprises later on. It’s especially helpful if you’re selling your house fast in New Berlin or other Milwaukee suburbs. Knowing what’s in your preliminary title report can speed up the selling process.

What a Preliminary Report Doesn’t Show a Homeowner

While the preliminary title report gives you a lot of information it doesn’t cover:

1. Building code violations: The report won’t tell you if your house breaks any local building codes. This will come up during a home inspection but it’s not part of the title report.
2. Unrecorded liens or claims: If someone has a claim on your property but hasn’t officially filed it, it won’t show up in the report. This is why it’s good to be aware of any debts or agreements you have that might affect your property.
3. Boundary line disputes: If you and your neighbor disagree about where your property line is the report won’t mention it unless it’s been legally recorded. Boundary disputes can be a big headache so it’s good to resolve these before selling if possible.
4. Zoning violations: The report doesn’t check if you’re using your property in a way that goes against local zoning laws. For example, if you’re running a business out of your home in an area zoned for residential use only this won’t show up in the report.
5. Environmental hazards: Things like soil contamination or nearby polluted sites aren’t included in the report. These are separate environmental concerns that might require different types of inspections or reports.
6. Physical condition of the property: The report doesn’t say anything about the state of your house or land. It’s just about the legal status of ownership. The condition of the property is usually assessed through home inspections.

If you’re selling a house that needs work in Milwaukee keep in mind the preliminary title report won’t mention any repairs or renovations needed on real property. That’s something you’ll need to disclose separately to potential buyers. Companies like Cream City Home Buyers buy houses in as-is condition which can be helpful if your house needs a lot of repairs.

Why Preliminary Reports Matter

You’re probably wondering why these reports are such a big deal. Well, they’re important for:

• They protect buyers: The report tells buyers what they’re getting into before they buy a property. It can reveal problems that might make them think twice. For example, if there’s a lien on the property the buyer would become responsible for it after purchase if it’s not resolved.
• They protect sellers: As a seller, the report can help you identify and fix any issues before you list your house. This can avoid delays or problems during the sale. For instance, if you discover an old lien you didn’t know about you can take steps to clear it before listing your house.
• They’re required for title insurance: Title insurance companies use these reports to decide if they’ll insure a property. We’ll talk more about title insurance later but essentially the cleaner your title report the easier it is to get title insurance.
• They can speed up the sale: If you’re working with cash home buyers like Cream City Home Buyers having a clean preliminary title report can help the sale go through faster. Cash buyers want to close quickly and a clear title report removes one potential roadblock.
• They can affect the price: Issues revealed in the report might impact how much a buyer is willing to pay for your property. For example, if there are easements that limit how the property can be used some buyers might offer less.
• They provide a history of the property: The report can show how the property has changed hands over time which can be interesting and sometimes reveal important information.
• They can uncover fraud: In rare cases, title reports can reveal attempts at fraud like someone trying to sell a property they don’t actually own.

Now that you understand the importance of these reports you can navigate the selling process more smoothly whether your home’s title or you’re looking to sell your house fast or just want to make sure everything’s in order.

Title Insurance

Now let’s talk about title insurance. This is insurance that protects homeowners and lenders from problems with the title. There are two main types of title insurance:

1. Owner’s title insurance: This protects you, the homeowner, from issues with the title that weren’t found before you bought the property. It’s a one-time fee that provides coverage for as long as you (or your heirs) own the property.
2. Lender’s title insurance: This protects the bank or other lender who gave you a mortgage. It’s usually required if you have a mortgage. This policy only protects the lender’s interest in the property, not yours as the homeowner.

Title insurance covers:

• Forgery or fraud related to the title
• Mistakes in public records
• Unknown heirs who claim they own the property
• Liens that weren’t discovered before the sale
• Errors in the legal description of the property
• Lack of access to the property

When you sell your house the buyer will usually buy a new title insurance policy. The cost to sell your house in Milwaukee might include paying for the buyer’s title insurance depending on your agreement with your real estate attorney. This is often negotiable so it’s worth discussing with your real estate agent or attorney.

Do You Need a Preliminary Title Report?

If you’re selling your house you’ll almost always need a preliminary title report. Here’s why:

1. It’s usually required: Most buyers and their lenders will want to see a preliminary title report before closing the sale. It’s a standard part of the home-buying process.
2. It helps you prepare: The report can reveal issues you need to address before selling. For example, if there’s an old lien you forgot about you can take care of it before it becomes a problem.
3. It can save time: Having the report ready can speed up the selling process especially if you’re working with cash buyers. When you’re trying to sell my house fast in New Berlin or elsewhere every day counts.
4. It provides peace of mind: Knowing the status of your title can help you feel more confident about the sale. You’ll know exactly what you’re offering to potential buyers.
5. It can prevent future legal issues: By addressing any title problems now you can avoid potential lawsuits or claims after the sale.
6. It’s useful for pricing: Understanding any limitations or issues with your property can help you set a fair price.
7. It’s helpful for marketing: If your title is clear you can use this as a selling point when marketing your home.

Even if you’re working with cash home buyers who might be willing to skip some traditional steps it’s still a good idea to get a preliminary title report. Companies like Cream City Home Buyers who buy houses in as-is condition still need to know about any title issues before they can close a purchase.

Bottom Line

Preliminary title reports might seem like just another piece of paperwork but they’re a big part of the home-selling process. They give you valuable information about your property or title company’s legal status and can prevent surprises down the road.

Whether you’re selling a fixer-upper in Milwaukee or looking to sell fast, knowing what’s in your preliminary title report will make the process easier. It’s especially helpful if you’re working with cash home buyers in Fox Point or elsewhere in Milwaukee as it can speed up the real estate transaction.

Remember if you’re looking to sell your house fast in New Berlin or anywhere else in the Milwaukee area companies like Cream City Home Buyers can help. They buy houses in as-is condition and can often close fast without realtor commissions. But even in these situations, a clear title is still important.

In the end, a preliminary title report is more than just a piece of paper. It’s a tool that can help you sell your house with confidence knowing you’ve taken care of any potential issues upfront. It can save you time, money, and stress by identifying problems early in the selling process.

When you’re ready to sell take the time to review your preliminary title report carefully. If there are any issues address them right away. This might mean paying off old debts, outstanding taxes, correcting errors in public records, or resolving boundary disputes with neighbors. It might seem like extra work upfront but it will make your house more attractive to buyers and ensure a smooth closing process.

Every house is unique, every title transfer is unique and so is every sale. Whether you’re working with a traditional realtor or cash home buyer understanding your preliminary title report is a big part of selling your home. So when you’re ready to sell make sure you know your preliminary title report. It could be the difference between a smooth and successful sale.