Which of the following descriptions fits a title commitment exception?

A title commitment exception refers to specific conditions or issues that are noted in a title commitment document, indicating items that are excluded from coverage or that may affect the title to the property. Existing liens not reflected in public records directly fit this definition because they represent obligations that are currently attached to the property but might not be readily discoverable through standard public record searches.

These liens could affect the buyer's ability to take clear title and could create financial liabilities if not addressed. Title insurance typically covers issues that are found during the title search process, but if existing liens do not appear in public records, they could still be an encumbrance on the property. Therefore, they become an exception in the title commitment.

The other choices present scenarios that do not directly align with how exceptions in title commitments are defined. Delayed disbursement of funds deals more with the timing of the closing process than with the title itself. Future assessments by the municipality could be considered a potential future event affecting the property but does not constitute an exception that currently bears on the title. Wholly new legislation could have implications for property law but would not specifically relate to an established commitment exception regarding title defects.