What is a title commitment?

A title commitment is indeed a document that outlines the terms for issuing a title policy. It serves as a preliminary agreement and provides a detailed summary of the property’s title history as well as the conditions that must be met before a title insurance policy can be issued. This commitment includes the description of the property, any matters that could affect title (like liens or encumbrances), and specifies the insurance coverage being offered.

Understanding title commitments is essential for buyers and sellers as it informs them about any potential issues that may need to be resolved before a real estate transaction is completed. This allows parties to address any title issues proactively and ensures a smoother transfer of property ownership.