Title report vs. title insurance: what's the difference?
People use “title report” to mean several different things. Here is how an informational property title report compares with the documents a title company issues.
Informational title report (O&E)
A summary of the public record: current owner, vesting deed, open mortgages, liens, judgments and taxes. Fast and inexpensive. No insurance and no guarantee. Best for research and due diligence before you commit.
Title commitment (preliminary report)
Issued by a title insurer or agent for a specific transaction. It lists the requirements to close and the exceptions the policy will not cover, and it leads to a title insurance policy.
Title insurance policy
An insurance contract that protects the owner or lender against covered title defects, up to the policy amount. Required by most lenders.
Abstract of title / attorney opinion
A detailed history of every recorded instrument affecting the property, examined by an abstracter or attorney who gives an opinion on title.
Which do you need?
Researching or screening a property: an O&E report is usually enough. Buying, selling, lending or closing: use a licensed title agency or attorney.