Escrow & Title
In Colorado, a 'title commitment' issued before closing serves what primary purpose?
AA. It guarantees there are no encumbrances on the property
BB. It is the title company's commitment to issue a title policy upon satisfaction of listed conditions and exceptions✓ Correct
CC. It serves as the final title policy
DD. It replaces the need for a title search
Explanation
A title commitment (also called a preliminary title report) is the title company's promise to issue a title insurance policy if the buyer closes and meets specified conditions. It discloses existing exceptions and requirements. The actual policy is issued at or after closing.
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