A contractual term – a contingency – that allows a buyer to inspect and approve the Preliminary Title Report before the contract becomes binding. The buyer doesn’t have the right to simply rescind the contract, though. First, the seller is given an opportunity to fix the defect. If the seller can do so prior to closing, the contract remains binding.
Note that a title report is a complicated document. Interpretation of it - including understanding the underlying documents - is the practice of law. A prudent buyer will hire an attorney to assist with this aspect of appropriate due diligence.