What is a title commitment and how does it relate to title insurance?
Title Insurance provides a conditional guarantee that the buyer is the exclusive, legal title holder to the property. Before a title company will offer title insurance, though, it will first issue a title commitment. A title commitment is a preliminary report by the title company that shows the type of title insurance it will commit to offer based on information it researches and gathers from a variety of sources. A title company will provide a title commitment as a preview of what the title insurance policy will look like once it is issued after closing. After the title company issues this preliminary report both the buyer and seller have an opportunity to submit documents or other evidence to the title company to prove that the exceptions raised in the report should be waived. An exception is an item which may “cloud” the title and prevent the seller from passing “clear” title on to a buyer. Such items may be building lines and easements, mortgages, mechanic’s liens, municipal requir
