Finance
What is the purpose of a title commitment (title binder) issued before a real estate closing in Illinois?
ATo set the closing date and time
BTo show the buyer and lender the conditions that must be met before a title insurance policy will be issued✓ Correct
CTo bind the seller to the listing agreement
DTo commit the lender to funding the loan
Explanation
A title commitment (also called a title binder or preliminary title report) is issued by the title company before closing. It details the current state of title, including existing liens, easements, restrictions, and exceptions, and states the conditions that must be satisfied before a title insurance policy will be issued. Buyers and lenders review the title commitment to identify any title issues that must be resolved before closing.
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