What Is a Title Commitment? A Clear Guide for Buyers & Sellers

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A Title Commitment is a document issued by a title company outlining the conditions under which it agrees to issue a title insurance policy. Title insurance is a unique in that it protects policy holders from events that happened in the past. ​Key purposes of a Title Commitment include:

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Identifying Liens and Issues: It lists liens (such as unpaid taxes or mortgages), easements, or legal restrictions that must be cleared before the property changes ownership.

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Ensuring Clear Title: It verifies that the seller is the true owner and provides a clear, marketable title, reducing risks for the buyer and lender.

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Setting Closing Requirements: It serves as a checklist (Schedule C) of requirements—like paying off existing debt—that must be met to issue the final insurance policy.

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Disclosing Coverage Exceptions: It outlines what the policy will not cover (Schedule B), allowing the buyer to understand limitations, such as property line issues or easement rights. 

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The Title Commitment is typically sent via email by the title company handling the transaction to both the buyer and seller. It details the property address and the parties involved, and provides links to county recordings and public records for both parties’ review. The primary purpose of the Title Commitment is to identify any existing liens, defects, or restrictions on the property, ensure the seller has the legal right to sell, and make the buyer aware of any issues prior to closing.
 

IMPORTANT 👉 Watch carefully for the Title Commitment to arrive early in your transaction via email. Read all pages thoroughly, and review all linked documents in detail during your due diligence period before it expires. You can read more about How to Read a Title Commitment here. ​

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Understanding real estate doesn’t have to be confusing. I break things down for my clients so they can buy or sell with confidence. Reach out to schedule a consultation today.