Escrow & Title

What is 'title commitment' and when is it issued in a Hawaii real estate transaction?

AA. The title company's final guarantee issued at closing that title is clear
BB. A commitment by the title insurance company to issue a title insurance policy upon fulfillment of specified conditions; issued after the title search and before closing✓ Correct
CC. A commitment from the seller that they will deliver clear title at closing
DD. A court order committing title to the buyer once conditions are met

Explanation

A title commitment (also called a preliminary report) is the title company's conditional promise to issue title insurance upon completion of specified requirements. It shows the current state of title, lists exceptions to coverage, and identifies conditions that must be met (like paying off existing mortgages). Buyers review the title commitment during their due diligence period.

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