Which statement best describes a title commitment?

• A. A promise from a title insurer detailing conditions for issuing title insurance, helping identify liens/defects.
• B. The final step in closing where funds are exchanged.
• C. A contract to purchase real estate with contingencies.
• D. A list of property taxes due on closing date.

Answer: (A)

A title commitment is a promise from a title insurer that outlines the conditions and requirements that must be satisfied before the final title insurance policy will be issued. It serves as a preview of what the insurer will insure, showing what is currently titled to the property, any liens, defects, or encumbrances, and what must be addressed for the policy to be issued. This helps buyers and lenders understand potential problems and what needs to be cleared or disclosed before closing.

The statement that best describes this is that the title commitment lays out the conditions for issuing title insurance and identifies liens and defects that must be resolved or disclosed. It’s not the actual closing step, which involves funds exchanging hands; it’s not the contract to purchase real estate, which is a separate agreement with contingencies; and it’s not a tax list for closing, which relates to settlement costs.