A Title Commitment provides a list of the matters which will
be shown as exceptions to coverage in a designated policy or
policies of title insurance, if issued concurrently, covering a
particular state or interest in land. It is designated to provide
a preliminary response to an application for title insurance
and is intended to facilitate the issuance of the designated
policy or policies. It is normally prepared after application
(order) for such policy(ies) of title insurance on behalf of
the principals to a real property transaction.
The Title Commitment states on its face that it is made
solely to facilitate the subsequent issuance of a title
insurance policy and that the insurer assumes no liability for
errors in the report. Accordingly, any claim arising from a
defect in title must be made under the title policy and not
the Title Commitment.
If a title policy is not contemplated, a Title Commitment
should not be ordered. Instead, consideration should be
given to requesting a Subdivision Guarantee Report or other
similar title product.
After a title order has been placed, matters relative to the
title policy coverage on the subject property are assembled
in a title search package and examined by skilled technicians.
This is when the Title Commitment is prepared and sent
to the customer. The report contains relevant information
so that the parties to the transaction will become aware
of matters which will not be insured against by the title
company. This report is issued before the title policy, hence
the name Title Commitment.
The Ticor Title Title
Commitment
is an offer to issue a
policy of title insurance
covering a particular
estate or interest in
land subject to stated
exceptions.
Since these exceptions may point to potential problems with an intended purchase,
it is important for all parties to review the report once it is received.
15
WHAT IS THE TITLE COMMITMENT?




