What is your title commitment?

47018264_M (2)You know that you need title insurance but before you close your deal you get your title commitment. What is your title commitment? Is it part of your title insurance? Don’t worry we have all the answers to your questions.

What is your title commitment?
Your title commitment is basically your promise that you will be issued title insurance after the deal closes. All the same terms, conditions and exclusions are included in your commitment as in your insurance policy.

Why do I need a commitment if I have insurance?
Your title commitment is your chance to review your coverage before the deal closes. Your title insurance protects you from an unknown issues that may affect your property title, like easements or liens. When a title commitment is issued, the title insurance company has researched all the public records and exclusions that may affect your title.

Do I have to review my commitment?
Your title commitment will list any exceptions or issues that may affect your title insurance later on. If any item like an easement is listed in your exceptions and becomes a problem once you take ownership, your title insurance will not cover the cost. Your title commitment is really your chance to thoroughly review what your title insurance covers and what it does not.

How does my title commitment protect me?
Reviewing your title commitment before your closing can help you to be aware of any exceptions that you may be responsible for. If you are aware before you close you can make the necessary changes or include the issue in your final price. Properties can change dramatically over the years and not every change may be recorded properly such as fence lines, easements or other property issues. Understanding your exact coverage for your property lines as they are described and not as they appear in person can help you be aware of any potential issues that you may be responsible for.

Who should review my title commitment?
We are always happy to explain and go over your title commitment with you. It’s also a good idea to have it approved by your lawyer and real estate professional.

You should make sure that you know exactly what you are getting when you take ownership of a property and that’s why your title commitment is so important. These are only some of the most common questions we get asked about title commitments. If you have more specific questions, don’t hesitate to call us. We’ve always got the answers you are looking for.