Escrow & Title
A 'title commitment' (also called a 'title binder') provides the buyer with:
AA final title policy that is fully effective from the date of issue
BA preliminary commitment by the title company to issue a title insurance policy, subject to specified exceptions and conditions✓ Correct
CA guarantee that the property is free from all encumbrances
DAn abstract of all recorded documents on the property
Explanation
A title commitment (title binder) is a preliminary commitment by the title insurance company to issue a title policy on specific terms, subject to certain conditions and exceptions. The buyer can review the commitment to identify any title issues before closing. The full policy is issued after closing.
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