Escrow & Title
A South Dakota title company issues a commitment for title insurance before closing. This commitment:
AGuarantees clear title without further conditions
BStates the conditions that must be met for the title insurance policy to be issued✓ Correct
CIs equivalent to a title insurance policy
DObligates the seller to clear all listed exceptions
Explanation
A title commitment (binder) is a promise to issue title insurance, subject to meeting certain conditions and exceptions. It lists what must be done (pay off liens, resolve defects) before the policy is issued.
Related South Dakota Escrow & Title Questions
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