Attorney’s Preliminary Report

Importance of Attorney’s preliminary report

The land deals are extremely important investments made by anyone because of the money that is involved. This is the reason that this field witnesses the most cases of frauds. The frauds are generally involving the title fraud or fraud associated with the person trying to sell the property that does not solely belongs to him and heirs and co-owners whose representation is mandatory in closing the deal.

The attorney’s preliminary report is a written document issued by the attorney in approval of a title of a property. This document is provided to the insurance company by the attorney so that the title insurance can be obtained by the buyer.

The issuance of this preliminary report is based upon the searches that are made through the public documents. These searches are extensive and require an attorney who is experienced in such matters.

The title defects may lead to many problems for the buyer or the new owner of the property. This is because there may be hidden hazards that are associated with a property which the seller may not disclose during the closing f the deal either deliberately or unknowingly. The hidden hazards may be

• There is a co-owner who has not been disclosed to the buyer
• The heir of the property does not agree to the selling of the property
• The deed of the land is forged
• Any type of mistake in recording the property in the public records

This is why it is important for any land buyer to have a title insurance.

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Attorney’s preliminary report.

Schedule A.
In accordance with the certification included with this report, it is the opinion of the undersigned that the marketable fee simple title to the real estate described in Schedule C is as of the date and time of this certificate vested in _________. This property is to be sold to _________ for $_____ and/or mortgaged to _________ as security for a loan of $_____ which loan is FHA _________ VA _________ conventional _________.
Schedule B.
1. Taxes and special assessments:
(a). Taxes have been paid through and including those for the year _________[date].
(b). Special levies or assessments now due or payable in future installments: _________.
2. Mortgages, deeds of trust, and seller’s liens: _________[give complete data].
3. Restrictive covenants and conditions: Are there any? _________.
(a). Recorded on _________[date] in book _________, page _________. Are they violated? _________.
(b). Do restrictions contain reversionary or forfeiture clause? _________. If so, has such clause been released or subordinated in favor of deed of trust to be insured? _________(Attach copy.)
(c). Any restriction as to race, color, or creed recorded subsequent to February 15, 1950? _________.
4. Are there other liens, objections and defects? _________(Answer “yes” or “no” and, if any, check and describe below.)
(a). —judgments or decrees.
(b). —income tax liens.
(c). —estate, inheritance or corporation franchise tax.
(d). —mechanic’s or materialmen’s liens of record.
(e). —decedent’s debts or unadministered estates.
(f). —bankruptcy proceedings; suits pending.
(g). —easements, party wall agreements, encroachments.
(h). —oil and mineral rights and other matters.
5. Do premises have a means of access? _________.
6. Insurance as to matters of survey required? _________. (If yes, attach current plat with corresponding surveyor’s certificate.)
7. Property is occupied by owner _________ tenant _________. Describe terms of lease and recordation data at 4 above.
8. Statutory lien period has _________, has not _________ expired since last improvements or repairs.
The undersigned certifies as set forth on the certification below that the above information is correct. Title is certified through _________[date], at _________ —.m.
Address _________
_________[Approved attorney]

_________[Signature]

Schedule C.
[Insert description from deed or deed of trust to be insured or attach a copy.]
Attorney’s Certification
The approved attorney whose signature appears here certifies to _________(insurance company) as follows:
(a) That the information contained in Schedules A and B of this report is based upon a personal examination of the public records affecting the title to the real estate described in Schedule C and that this examination covers a period of not less than 60 years last past; and
(b) That in the attorney’s opinion the marketable fee simple title is vested as shown in Schedule A of this report and the title is subject only to those matters shown in Schedule B of this report; and
(c) That the survey, if any, submitted with this report on title has the building setback line as shown on the recorded plat; and
(d) That so far as is known there is no dispute among attorneys of the local bar as to the validity of the title to the real estate described in Schedule C, and that the title is in no way dependent upon the sale of the property for delinquent taxes or assessments.