A preliminary title report allows you to review any possible impediment that would prevent a clear title from passing on to you, such as liens placed against the prior owners or any documents that will restrict your use of the property.
A preliminary report shows you the extent of your ownership rights or interest. The most common form of interest is "fee simple" or "fee," which is the highest type of interest an owner can have in land. Liens, restrictions and interests of others excluded from title coverage will be listed numerically as exceptions in the report. The interests of any third parties, such as easements granted by prior owners, can limit use of the property. You may want to clear these unwanted items prior to purchase.
Additionally, a list of standard exceptions and exclusions not covered by the title insurance policy may be attached to the preliminary report. This section includes items the buyer may want to investigate further, such as potential building and zoning laws.