Escrow & TitleIntermediateDelaware Exam

What is 'title commitment' (title binder) in a Delaware real estate transaction?

AA final title insurance policy issued at closing
BA preliminary document issued by a title company committing to issue a title insurance policy subject to specified conditions and requirementsCorrect
CSimply an informal personal commitment made by the seller alone to deliver clear title by the closing date, which is the standard approach used
DA financial commitment from the lender to fund the mortgage

Why A preliminary document issued by a title company committing to issue a title insurance policy subject to specified conditions and requirements Is Correct

Answer B: A preliminary document issued by a title company committing to issue a title insurance policy subject to specified conditions and requirements

A title commitment (or title binder) is a preliminary document from the title insurance company indicating it will issue a title policy for the described property upon the closing of the transaction, subject to meeting the stated requirements and exceptions.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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