A title commitment, also called a title binder or preliminary title report, is a document issued by a title insurance company. It precedes the final title insurance policy and outlines the terms, conditions, and exclusions under which a title insurance policy will be issued.
The commitment essentially serves as a promise: if the stated conditions are met, the title company will insure the buyer and lender against title defects. Understanding this document is key to ensuring there are no surprises on closing day.
The title commitment is generally divided into four main sections:
This section includes:
Why it matters: Schedule A confirms that the correct property and parties are being insured. Errors here can delay closing.
Outlines conditions that must be satisfied before the title policy can be issued. This may include:
Why it matters: Failure to meet these conditions can void the title policy or delay closing.
Lists issues the title policy won’t cover, such as:
Why it matters: These exceptions may affect your ability to use or develop the property as intended.
This is a precise, survey-based description of the property. It often includes references to metes and bounds or lot numbers within a subdivision.
Why it matters: A discrepancy in the legal description can cause major issues, particularly in rural or subdivided areas.
Title commitments may uncover items that need to be addressed before closing. These can include:
Identifying these early allows parties to resolve them without delaying the transaction.
While buyers often focus on home inspections and financing, the title commitment is equally critical. It provides:
At All Seasons Title, we guide clients through every part of the title process—including reviewing and explaining title commitments. Our team works proactively with realtors, lenders, and buyers to resolve any title issues before they become problems at the closing table.
We also ensure clients understand the implications of every item listed on their title commitment. Transparency and communication are key pillars of our service philosophy.
A title commitment is more than just another piece of paperwork—it’s a vital checkpoint in the closing process. Understanding its contents and implications empowers you to move forward with confidence.
For personalized help navigating title commitments and other aspects of property transactions, contact us