Under Alabama law, what is the purpose of a title commitment?

A title commitment serves as a preliminary report that outlines the title insurer's obligations regarding a property. This document details the conditions under which the title insurer agrees to issue a title insurance policy. It includes critical information such as the legal description of the property, any liens or encumbrances, and specific requirements that must be addressed before the title insurance policy is issued.

Understanding the commitment helps both buyers and lenders know what risks are associated with the title and what steps must be taken to ensure clear ownership. This function is crucial in real estate transactions, ensuring that all parties are aware of the title's status and can move forward with confidence.

Other options, while related to real estate, do not accurately capture the purpose of a title commitment. Loan agreements pertain to financing terms, confirming property taxes addresses only one aspect of the overall title condition, and establishing property boundaries relates more to surveys rather than title insurance commitments.