What is the purpose of the title commitment?

The purpose of the title commitment is fundamentally to inform the proposed insured of the status of the title to the property in question. A title commitment essentially acts as an assurance that a title insurance policy will be issued once specified conditions are met. It provides critical information about the rights, restrictions, and other details pertinent to the title, enabling the proposed insurer and any involved parties to understand any potential claims, liens, or encumbrances that may affect ownership.

This commitment typically outlines any issues that need to be resolved before the insurance policy can go into effect, giving all parties involved clarity and security regarding what they are purchasing. It serves as a preliminary step to ensure that the title is insurable, allowing informed decisions based on the current status of the title.

While the title report is indeed a component that provides detailed information about the title and any issues relating to it, it is part of the broader commitment process. Similarly, the commitment might mention the terms of the title policy but that's part of the larger context of informing the insured. The notion of "clearing commitments" isn't directly applicable here, as the commitment is more about identifying the status rather than the act of clearing issues. Thus, the primary aim of the title commitment is to inform the proposed insured