What is a title commitment and what does it typically show?

• A. A promise to issue a title insurance policy; it lists conditions, exceptions, and requirements before clear title can be insured.
• B. A final title report.
• C. The title's current market value.
• D. A mortgage payoff statement.

Answer: (A)

A title commitment is a binding promise from a title insurer to issue a title insurance policy once certain conditions are met. It comes after a title search and shows what must be done before the title can be insured and what will be excluded from coverage. It lists the proposed insured, the property’s legal description, and the policy amount, and it separates information into requirements and exceptions. The requirements section explains actions needed to clear defects or liens before closing (such as paying off loans, obtaining releases, or fixing recording errors). The exceptions section shows items that will not be insured, like certain easements, encumbrances, or recorded restrictions that remain with the title. This is not the final title report, and it is not a current market value or a mortgage payoff statement; rather, it governs what the insurer will insure and under what conditions.