For underwriting to approve the borrower's loan request, the title to the property that the borrower is purchasing must be marketable title. Marketable title means that the ownership and possession of the real property is readily transferable because it is free from valid claims by outside parties.

A request for title insurance is made by the lender, mortgage broker, real estate broker, or other party involved in a purchase or refinance transaction. When a title insurance company receives a request for title insurance it will prepare a preliminary title report.