Escrow & Title
The purpose of a title commitment (preliminary title report) is to:
AGuarantee that there are no defects in the title
BInform the buyer of the current state of title and conditions under which the title company will issue title insurance✓ Correct
CSet the final purchase price
DConfirm the loan amount from the lender
Explanation
A title commitment discloses the current condition of the title—including liens, encumbrances, and exceptions—and specifies the conditions that must be met before the title company will issue a final title insurance policy.
Related Arkansas Escrow & Title Questions
- A deed in lieu of foreclosure is used when a borrower:
- A real estate agent involved in a transaction should NOT handle closing funds because:
- A satisfaction of mortgage (release of lien) is recorded when:
- The title to real property is transferred at closing when:
- An escrow agent who disburses funds contrary to the escrow instructions is liable for:
- Which of the following is an exception typically found in standard title insurance policies?
- A wire transfer of closing funds is typically required for larger transactions because:
- A title search going back to the sovereign grant is called a search:
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