Escrow & Title
What is the purpose of a title commitment (also called a title binder) in an Illinois real estate transaction?
AA final title insurance policy issued after closing
BA preliminary report showing the current state of title and conditions for issuing title insurance✓ Correct
CA lender's commitment to provide financing
DA binding offer from the title company to purchase the property
Explanation
A title commitment (or title binder) is a preliminary report issued by the title company before closing that shows the current state of title, lists any existing liens or encumbrances, and states the conditions that must be met before the title company will issue a title insurance policy. It allows buyers and lenders to review title issues before closing.
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