Escrow & Title
A Florida buyer receives a 'title commitment' from a title company before closing. What does this document do?
AGuarantees the property will increase in value
BCommits the title insurer to issue an owner's and/or lender's policy upon satisfaction of listed requirements✓ Correct
CConfirms the buyer's financing is approved
DServes as the final deed transferring ownership
Explanation
A title commitment (binder) is an insurer's promise to issue a title insurance policy once specified conditions (requirements) are met and exceptions are noted. It reveals the condition of title before closing.
Related Florida Escrow & Title Questions
- In Florida, a real estate broker who receives an earnest money deposit must deposit it into an escrow account within:
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- When a Florida escrow dispute arises and the broker cannot determine to whom the funds belong, the broker may:
- A Florida buyer discovers after closing that there is an unpaid property tax lien from 3 years ago on the property. If the buyer has an owner's title insurance policy, the insurer will:
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