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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?