Escrow & Title
A title commitment in Texas is issued before closing and is BEST described as:
AA guarantee that title is free of all defects
BA promise by the title company to issue a policy subject to stated exceptions and requirements✓ Correct
CThe final title insurance policy
DA deed conveying title to the buyer
Explanation
A title commitment (or preliminary title report) is the title company's commitment to issue a title insurance policy. It lists Schedule A (transaction details), Schedule B-I (requirements to be met), and Schedule B-II (exceptions that will remain in the policy).
Related Texas Escrow & Title Questions
- Which of the following title defects would MOST likely be covered by a Texas owner's title insurance policy?
- In Texas, when a deed of trust is paid off, the lender (beneficiary) must provide a release of lien. This document is called a:
- When a Texas property is foreclosed under a deed of trust at the trustee's sale (first Tuesday), the successful bidder receives a:
- The Texas Department of Insurance regulates title insurance rates in Texas. This means:
- RESPA's Section 9 prohibits:
- Which of the following best explains why Texas does not have a real estate transfer tax?
- A Texas simultaneous issue of owner's and lender's title insurance policies means:
- In Texas, a 'mechanics and materialmen's lien' (M&M lien) protects:
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