Escrow & Title
An Indiana title company's commitment to insure title is issued after which step in the closing process?
AAfter the buyer signs the purchase contract
BAfter a title search is completed and before closing, showing what conditions must be met for the policy to be issued✓ Correct
CAfter the deed is recorded
DAfter the mortgage is fully paid off
Explanation
A title commitment (preliminary title report) is issued after the title search, before closing. It shows the current state of title and lists requirements (conditions) that must be satisfied before the title company will issue the insurance policy.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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