Be able to have confident conversations, and smoother closings with fewer surprises!
Let’s face it—of all the documents in a transaction, the preliminary title report doesn’t exactly top the list of “most exciting reads.” But if you’re looking to grow your business, protect your clients, and earn a reputation as a reliable, high-level professional, then understanding how to read (and explain) the title report is a skill you can’t afford to overlook.
Whether you’re new to the industry or closing dozens of transactions a year, here’s what every broker should know—and confidently communicate—about title:
First, What Is “Title”?
“Title” refers to the legal ownership of a property—and the title report is the document that shows what’s tied to that ownership. Think of it as the property’s history and to-do list rolled into one: who owns it, who’s owed money, what’s allowed, and what needs to be handled before closing.
What Should Brokers Be Able to Explain?
1. Who Legally Owns the Property
The title report confirms the legal owner(s) and identifies if there are other parties involved, like a spouse, estate, trust, or business entity.
How to explain it:
“Before we get too far, we’ll verify the current legal owner—just to make sure the right people are signing at closing.”
2. What Liens or Debts Need to Be Resolved
These might include mortgages, tax liens, judgments, or other encumbrances. They’re not necessarily deal-breakers—but they are deal-delayers if not handled early.
How to explain it:
“We’ll check the title report to see if there are any financial claims tied to the property. It’s better to know now than a week before closing.”
3. What Use Restrictions Apply
Title reports include easements (rights others have to use the land) and CC&Rs (Covenants, Conditions & Restrictions), which may limit improvements or property use.
How to explain it:
“This tells us if there are any restrictions—like utility lines or HOA rules—that affect what the buyer can or can’t do with the property.”
4. Why Title Insurance Matters
Lenders require title insurance for a reason. But owners can (and should) protect themselves too. It covers legal fees and financial loss from unexpected claims of ownership or recording errors.
How to explain it:
“Even years after closing, someone could show up claiming rights to the property. Title insurance helps protect against those kinds of surprises.”
What If I Don’t Read the Report?
You’re not alone—many brokers and clients alike admit that they skim the report (or skip it altogether), hoping the title company will flag anything important. While your title team will notify you of major concerns, the title department doesn’t know your client’s plans like you do.
Want to impress your buyer who’s planning a guest house or home business? Read the report. Want to avoid a last-minute scramble over a shared driveway or old lien? Read the report.
- Brokers don’t need to be title experts—but they do need to be guides.
Want to Level Up Your Business? Start With Understanding Title.
The brokers who rise to the top don’t just negotiate well—they prevent problems before they arise. They do this by confidently guiding clients through complex paperwork, and they collaborate with their title and escrow teams.
- “Let me check the title report” builds trust.
- “Oh, I didn’t know that was in there”… doesn’t.
Knowledge Builds Confidence – and Referrals!
Your clients may never fully understand a title report, but they’ll remember that you did. They’ll remember that you explained it clearly, flagged potential issues early, and helped deliver a smooth, professional closing experience.
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Review the title report on every transaction. Even a 10-minute review can save days of stress.
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Ask questions. Your title and escrow officers are there to help. Call and one of us at Land Title Company!
