Preliminary Judicial Reports
Contents
Overview
A Preliminary Judicial Report (PJR) is an insured product that is designed to list all of the current owners as well as liens that affect a given piece of property at the time a foreclosure. It is required to be filed by the foreclosure attorney in any foreclosure action and is primarily for the benefit of the court handling the foreclosure. It may need to be updated throughout the process depending on the amount of time that has passed during the foreclosure. The PJR must then be finalized with the court by filing a Final Judicial Report (FJR) which may also need to be updated for similar reasons. The rates to be charged for this insured product are set by the OTIRB.
Historical Background
Prior to the enactment of the current statute in 2008, all 88 counties in Ohio required some form of title evidence to be filed with any foreclosure action so that the court could confirm who all of the parties in interest were to the foreclosure. There were a variety of ways this was done from commitments, to attorney opinions, to a document called a "preliminary judicial report", which did not necessarily resemble the current form. The 2008 statute created a uniform process for this type of report.
Sources
Compliance
- Ohio’s anti-inducement statute.
Forms
- Preliminary Judicial Report
- Supplemental Preliminary Judicial Report
- Final Judicial Report
- Supplemental Final Judicial Report
- Extended Coverage Endorsement (required for Cuyahoga County)
- Judicial Commitment Endorsement
Searching
The search period will depend on the county and should follow the general underwriting guidelines for full searches in Ohio. Based on the local court rules, a shorter or longer search period may apply. If the search period required by the local rules is longer than the standard full search period, the local court rule should be followed. If the search period is shorter than the standard full search, then the search period can be adjusted with permission from WFG underwriting counsel.
Examination
Curative
Underwriting
Production
- PJRs have their own jackets and separate set of policy numbers to distinguish them from owner's and loan policies.
- For properties that are not 1-4 family residential properties, the foreclosure attorney has the option of filing a "Judicial Commitment" that consists of a regular owner's commitment with some additional modifications.
Cuyahoga County
- All PJRs issued in Cuyahoga County must include the Extended Coverage Endorsement.
Signatures
Several Counties require that the filed PJR be wet-signed by the licensed title producer. Most counties will accept a facsimile signature. The rule is typically determined by the local court rules for each county and does change from time to time. The counties that currently require west signatures are as follows:
- Ashland
- Auglaize
- Brown
- Delaware
- Erie
- Guernsey
- Hardin
- Meigs
- Morgan
- Richland
- Union
- Trumbull
- Washington
Closing & Escrow
There is no closing or escrow associated with PJRs. It should be noted though that the purchaser of a foreclosed property where a PJR was issued gains some coverage under the PJR as a result of the purchase.
Recording
PJRs, supplements, and FJRs are filed by the foreclosing attorney with the court.
Pricing
Pricing for Preliminary Judicial Reports is determined by the rates found in the OTIRB Rate Manual:
- The charge for a PJR is based on the amount of the unpaid principal balance. Regardless of the rate and amount of coverage, there is a mandatory minimum charge of $75. Ohio Rate Manual RP-2.
- The charge is $5 per thousand for judicial foreclosure of a lien. This includes mortgage foreclosures.
- The charge is $3 per thousand for any other type of proceeding.
- Updates to any PJR, including for any FJR, are $50 for each update. This is a filed rate and must be charged for each update. See Ohio Rate Manual RP-2.1.
- The charge for Extended Coverage Endorsement is based on the amount of coverage provided by its associated PJR. The rate is $0.50 per thousand of coverage with a mandatory minimum charge of $50. Ohio Rate Manual RP-2.2 This endorsement is required in Cuyahoga County.
- A Judicial Commitment follows the pricing for a regular owner's policy and is based on the amount paid by the successful bidder at the Sheriff's Sale. This is typically provided when a non-residential (1-4 family) property is being foreclosed.
- Ohio Title Insurance rates are non-inclusive, so it is possible to charge for search and examination above and beyond the premium charged for the PJR.
- Agents typically remit a portion of the premium based on their standard remittance rate.
