COMMITMENT FOR TITLE INSURANCE
As is the custom, the purchase contract (which also serves as escrow instructions) will probably instruct the escrow agent or title company to deliver a commitment for title insurance listing all exceptions to the title insurance policy. Copies of the report go to the buyer, seller, lender, and real estate agent(s) for their evaluation.
What Is On the Commitment for Title Insurance:
The report compiled from the title examiner’s findings provides the following information to show the condition of title as of a specific date; schedule A which is the information submitted to the title department by the escrow officer. It contains the basic information given to a title company such as the legal description of the property, sales price, loan amount, lender, name and marital status of buyer and seller; any assessments that are owed, any encumbrances (deeds of trust) or liens (like IRS tax liens or HOA liens on the property; schedule B “exceptions” a which are tied to a particular property that include Covenants, Conditions and Restrictions (CC&Rs), easements, homeowners association by-laws, leases and other items which will remain of record and transfer with the property. They are referred to as “exceptions” because the buyer will receive a clear title “except” the buyer’s rights will be subject to conditions in the CC&RS, recorded easements and so forth; tax parcel number, tax status (current or delinquent); when taxes are paid through; the requirements/conditions under which the title company will require to be satisfied in order to issue title insurance; and a plat map or assessors map (picture or drawing) showing the location and dimensions of the property as found in recorded documents.
The commitment for title insurance makes no guarantees about insuring the title to the property. In fact, the preliminary title report does not guarantee anything regarding the property. It merely provides information regarding the contents of documents found in the public records and guarantees that the search made by the title company is complete.
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