What does a Title Commitment provide?

A Title Commitment is a crucial document in real estate transactions that outlines the terms under which a title insurance policy will be issued. It provides assurance to the buyer and lender that the title insurance will cover certain risks related to the property, such as potential title defects or liens. This commitment is typically issued before the closing of the property sale and includes important information such as the legal description of the property, the current title holder, and any exceptions to the title coverage.

The commitment does not serve as a letter to signify the sale of property, nor does it relate to repair responsibilities or an agreement between parties. Instead, it specifically focuses on the conditions and details necessary for obtaining title insurance, which protects against unexpected future claims to the property. Thus, understanding the role of a Title Commitment is essential for anyone involved in a real estate transaction, as it safeguards against potential legal disputes stemming from title issues.