How to Read a Preliminary Title Report

What the report is for

According to the Texas Department of Insurance, a title commitment is a statement that a title company is willing to issue title insurance under certain conditions, and if the seller resolves certain problems. The commitment comes before closing; the policy — the actual coverage — is issued after. Reviewing the commitment closely gives you and your lender a chance to resolve issues before they become closing-day surprises.

Importantly, a commitment "does not guarantee that there are no current issues or that none will arise in the future" — it discloses what the title search found as of its effective date, subject to further review.

The sections you'll typically see

1. Owner of record and vesting

The report opens by naming the current owner of record — for a purchase, this should match the seller — and describes the type of interest they hold. The most complete form of ownership is generally referred to as "fee simple."

2. Legal description

This is the property's formal, surveyed description — lot, block, subdivision, metes and bounds, or similar — rather than its street address. It's worth confirming this matches the property you actually intend to buy, especially for irregular parcels.

3. Requirements

These are items that must be satisfied before the title company will issue the policy — commonly things like paying off an existing mortgage, recording a release, or obtaining a missing signature. Requirements are meant to be cleared, not simply noted.

4. Exceptions

Exceptions are matters the report is flagging but that the policy will not cover unless resolved — things like known liens, unpaid taxes, recorded easements, or restrictive covenants. Anything listed here deserves a direct question to your title officer: what is this, and does it affect how I can use or finance the property?

Reading it alongside a title defect

Requirements and exceptions are where the issues covered in our guide to title defects and clouds on title typically surface. A defect that shows up here isn't necessarily a reason to walk away — most get resolved before closing — but it is something to understand rather than skip past.

Before you sign

• Confirm the owner of record and legal description match your understanding of the property.
• Ask about every item listed under requirements and exceptions — don't assume they're routine.
• Compare the commitment against your title insurance policy once it's issued, to see what ended up covered versus excluded.
• Keep the report; it's a useful reference if a title question comes up later.