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Title Commitment

A Title Commitment is a document describing the rights being conveyed in real property during a property transaction, as well as any restrictions or rights that others may have on that property. The Title Commitment is prepared in advance of Title Insurance being issued. The Title Commitment is a critical piece of information that alerts the buyer, lender and other transaction parties of any issues that could cloud the title to the real estate or restrict the use of the property. Essentially, the Title Commitment is used to determine that the seller has the right to sell the property, and the buyer will receive all the rights to the property (and the lender can foreclose on the collateral, if necessary down the road).

Examples of limitations to the property rights include:

  • Unpaid property taxes or mortgages
  • Liens against the property
  • Easements burdening the property

These items should be noted in the Title Commitment, as well as exceptions to the Title Insurance. Common exceptions to title insurance include:

  • Unrecorded information
  • Easements and rights of way
  • Zoning or building restrictions

A thorough Title Commitment Review is essential and often the lender is the most scrutinizing reviewer of the title commitment. A Title Commitment Review is also conducted by the professional surveyor conducting the ALTA/ACSM Land Title Survey. Other parties may also conduct the Title Commitment Review such as attorneys and third party due diligence firms.

Once all requirements and conditions are met, then the Title Insurance policy is issued.


Land Survey and Zoning Terminology