Escrow & Title
What is the purpose of a preliminary title commitment (title commitment) in a Colorado real estate transaction?
AIt guarantees the property is free of all liens
BIt is the title company's promise to issue a title insurance policy subject to listed exceptions and requirements✓ Correct
CIt serves as the purchase contract between buyer and seller
DIt replaces the need for a survey of the property
Explanation
A title commitment is the title company's commitment to issue a title insurance policy. It shows the current title status, lists any exceptions (items not covered) and requirements (conditions that must be met) before the policy is issued.
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