What is a title commitment?

A title commitment is essentially a document that outlines the terms under which title insurance will be issued for a specific property. It serves as a preliminary report, indicating the status of the title and revealing any issues or defects that may need to be resolved before closing on the property. The title commitment specifies the conditions that must be fulfilled to finalize the issuance of the title insurance policy, such as the payment of premiums or the resolution of liens or encumbrances on the property. This document is critical for both buyers and lenders, as it provides assurance regarding the property’s title and highlights any potential risks.

In contrast, a certification of the property value pertains to appraisals rather than title insurance. A legal contract between the buyer and seller refers to the purchase agreement, which is separate from title insurance matters, while an assessment of title insurance rates deals more with pricing than the actual process of title insurance commitment itself.