Transfer of Property, 8% of the examination
Preliminary report
An offer to issue a title policy on stated terms. It is expressly not an abstract of title.
The report states the terms, conditions, and exceptions under which the insurer offers to issue a policy. It is not an abstract or a representation of the complete condition of title. Review its listed liens, easements, and CC&Rs, but do not treat it as an issued insurance policy or a title guarantee.
See also
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
What is a preliminary report in a California transaction?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.