Escrow & Title
What is a 'title commitment' versus a 'title policy' in Nevada?
AThey are identical documents with different names
BA title commitment is a preliminary agreement to issue a title policy, subject to stated conditions and exceptions — it is issued before closing; a title policy is the actual insurance contract issued after closing upon satisfaction of the commitment conditions✓ Correct
CA title commitment is issued by NRED; a title policy is issued by private companies
DA title policy is only issued for commercial properties; commitments are for residential
Explanation
The title commitment (or 'prelim') is issued before closing — it shows Schedule A (property description, proposed insured, amount of insurance) and Schedule B (exceptions, conditions). The title company commits to issue a policy IF the conditions of the commitment are met (existing liens paid off, gaps in title resolved, specific endorsements issued). After closing, upon satisfaction of all conditions, the title commitment becomes the actual title insurance policy, providing ongoing coverage to the insured.
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