A letter report is a title document that summarizes a property's legal status, revealing issues like tax liens, unpaid mortgages, judgments, easements, boundary errors, and ownership disputes before you buy, sell, or refinance. It is faster than a full title search and helps you fix problems early. Title Resources Inc. delivers letter reports for $175.
Key facts about letter reports
- A Title Resources Inc. letter report costs $175 and summarizes liens, taxes, judgments, and ownership details.
- A letter report is quicker and lighter than a full title search but flags most transaction-blocking issues.
- According to the American Land Title Association, title professionals find and fix issues in roughly one in three transactions.
- TRI is locally owned, serving clients since 2005, and licensed in Missouri, Illinois, Colorado, Florida, and Indiana.
What is a letter report?
A letter report is a summary document that describes the legal status of a property. It is not as exhaustive as a full title search, but it surfaces the issues most likely to affect a sale, purchase, or refinance. It gives buyers, sellers, and lenders a clear snapshot before committing to a transaction.
A typical letter report from Title Resources Inc. includes:
- Outstanding liens or mortgages
- Property taxes owed
- Judgments against the property
- Legal descriptions and ownership details
What are the most common issues a letter report reveals?
Letter reports uncover a range of problems that are rarely visible to buyers or sellers. Below are the six most common issues and exactly how to address each one.
1. What is a tax lien and how do you clear it?
A tax lien arises when the owner fails to pay property taxes and the government places a claim on the property to recover the debt. The lien must be paid before ownership can transfer, which can delay closing. It is one of the most frequent findings in a letter report.
How to address it: Contact the local tax authority to arrange payment, and confirm the lien is settled before closing. Buyers can also negotiate for the seller to clear the lien from sale proceeds.
2. How do you handle an unpaid mortgage on the property?
An unpaid mortgage or outstanding loan balance appears in the letter report when the seller has not fully paid off their loan. The debt must be satisfied before the property can legally change hands. Buyers should confirm the title is free of mortgage obligations before closing.
How to address it: The seller typically pays off the remaining balance through the proceeds of the sale. Your title company confirms the payoff and releases the lien of record.
3. What do judgments against a property mean?
Judgments are legal claims filed by creditors or other parties, often tied to unpaid debts or legal disputes. They attach to the property and can block a clean transfer of ownership. Buyers should not proceed until judgments are cleared from the title.
How to address it: Resolve judgments before closing, which may involve negotiating with creditors or having the seller pay the debt. TRI confirms each judgment is released of record.
4. How do easements and encroachments affect a property?
Easements give another party the legal right to use part of the property, such as for utilities or shared access. Encroachments occur when a neighbor's structure crosses the property line. Both can affect how you use the land, even when they do not stop a sale.
How to address it: Review easements carefully, especially if they limit future plans, since most are valid legal agreements. Encroachments may require a survey, negotiation, or legal correction with the neighboring owner.
5. What if the legal description is incorrect?
Sometimes a letter report shows discrepancies in the property's legal description. Inaccurately recorded boundaries create confusion about exactly what is being sold or transferred. Left unresolved, these errors can trigger future disputes.
How to address it: An incorrect legal description usually requires a new survey or a recorded legal correction. Fix it before completing the transaction to protect clear ownership.
6. How do you resolve an ownership dispute?
Ownership disputes appear when title is unclear or when competing parties claim the same property. This often happens with inherited property or gaps in the chain of title. Clear ownership is essential before any transaction moves forward.
How to address it: Resolving disputes may require negotiation among the parties or legal action such as a quiet title suit. Confirm undisputed ownership before you close.
How does a letter report protect your investment?
Ordering a letter report lets you identify and address problems before they disrupt your transaction. Whether the issue is unpaid taxes, a lien, or a legal dispute, having the facts early keeps your deal on track. It is an affordable way to reduce risk on one of the largest purchases most people make. At Title Resources Inc., a letter report costs $175.
Common questions about letter reports
How much does a letter report cost?
A letter report from Title Resources Inc. costs $175. It provides a focused summary of liens, taxes, judgments, and ownership details. That makes it a cost-effective first step before a purchase, sale, or refinance.
Is a letter report the same as a title search?
No. A letter report is a lighter summary of a property's legal status, while a full title search is more exhaustive. A letter report still flags most issues that could delay or block a transaction. For a full purchase with title insurance, a complete search is performed.
When should I order a letter report?
Order one early, before you commit to buying, selling, or refinancing a property. Finding liens, judgments, or boundary errors up front gives you time to resolve them. Early detection prevents last-minute closing delays.
Can a letter report stop a real estate deal?
A letter report itself does not stop a deal; it reveals issues so you can fix them. Unresolved liens, judgments, or ownership disputes are what actually block closings. Addressing findings early keeps the transaction moving.
Who should order a letter report?
Buyers, sellers, and anyone refinancing can benefit from a letter report. Investors and heirs handling inherited property find them especially useful. TRI prepares letter reports across all five states we serve.
Ready to safeguard your transaction? Title Resources Inc. is locally owned and has served clients since 2005. Order a letter report at https://titleresourcesinc.com/order-title/, call (636) 527-9670, or email orders@TitleResourcesInc.com to learn how we can help.
