Escrow & Title
What is the purpose of a 'title commitment' (commitment for title insurance)?
AThe buyer's commitment to purchase the property
BA commitment by the title company to issue a title insurance policy, subject to specified conditions and exceptions, after examining the title✓ Correct
CThe lender's commitment to make the loan
DA commitment by the escrow company to close by a specific date
Explanation
A title commitment (also called a title binder or preliminary title report in California) is the title company's commitment to issue a title insurance policy once specified requirements are met (such as payoff of existing liens). It shows the conditions and exceptions to the proposed policy.
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