Escrow & Title
What is the difference between a title insurance commitment and a title insurance policy?
AThey are the same document with different names
BThe commitment is the promise to issue a policy once closing conditions are met; the policy is issued after closing✓ Correct
CThe commitment protects the buyer; the policy protects the lender
DThe commitment covers the purchase price; the policy covers the loan amount
Explanation
A title insurance commitment (or preliminary title report) is issued before closing and outlines what the title company found in its search, the conditions that must be met before a policy will be issued, and any exceptions from coverage. The actual policy is issued after closing.
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