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Title Commitment
Practical Law Glossary Item w-000-5446 (Approx. 3 pages)
Glossary
Title Commitment
An agreement by a title insurance company to issue a title insurance policy in favor of a named insured (the proposed lender, owner, or tenant) on the terms contained in the title commitment.
The title insurance company's obligation to issue the type of policy identified in the title commitment is:
- Subject to the satisfaction of the requirements in the title commitment.
- Limited by the conditions and stipulations contained in the standard form of title commitment.
The title commitment is issued after the title insurance company produces a preliminary report or abstract of title. A title commitment contains:
- Schedule A, which identifies the:
- proposed named insured;
- land; and
- interest in the land to be insured.
- Schedule B, which:
- contains the Schedule B exceptions; and
- may be negotiated by the proposed insured.
After the title commitment is issued and before the closing of the transaction, the proposed insured may request the title company to either:
- Issue a proforma policy.
- "Mark" the title commitment to reflect any changes to the title commitment agreed on by the proposed insured and the title insurance company.
Either the "marked" title commitment or the proforma policy is attached to closing instructions prepared by the proposed insured and executed by the title insurance company.
For more information on title commitments and title insurance policies, see Practice Notes, Title Insurance Policies and Surveys: Overview and Understanding Title Insurance: Policy Coverage and Exceptions.