Which items are identified by an Ownership and Encumbrance Report (O&E)?

Which items are identified by an Ownership and Encumbrance Report (O&E)?

• A. Last recorded owner, legal description, and recorded unreleased deeds of trust or mortgage
• B. Current market value and tax status
• C. Zoning designation and building codes
• D. Flood risk and environmental data

Answer: (A)

An Ownership and Encumbrance Report shows who holds title to the property and what encumbrances affect that title. It identifies the last recorded owner, the legal description of the property, and any recorded deeds of trust or mortgages that have not been released. These elements establish who owns the property and what liens or claims must be satisfied or cleared before transfer or insurability of title. Items like current market value and tax status, zoning designations/building codes, or flood risk/environmental data aren’t part of an O&E because they relate to valuation, land use, or environmental factors rather than to ownership and recorded encumbrances.

An Ownership and Encumbrance Report shows who holds title to the property and what encumbrances affect that title. It identifies the last recorded owner, the legal description of the property, and any recorded deeds of trust or mortgages that have not been released. These elements establish who owns the property and what liens or claims must be satisfied or cleared before transfer or insurability of title. Items like current market value and tax status, zoning designations/building codes, or flood risk/environmental data aren’t part of an O&E because they relate to valuation, land use, or environmental factors rather than to ownership and recorded encumbrances.