What does "title commitment" refer to?

"Title commitment" specifically refers to a document that outlines the terms and conditions under which title insurance will be issued. It serves as a preliminary promise from the title insurer to provide title insurance, detailing any requirements that must be met before the title insurance can be finalized. This document includes crucial information such as the legal description of the property, the identity of the insured parties, any exclusions from coverage, and any outstanding issues that may need to be resolved, such as liens or encumbrances.

Understanding title commitments is vital for parties involved in a real estate transaction, as it assures them about the status of the title and any risks associated with it before closing. This clarity helps ensure that all involved understand their rights and obligations regarding the property's title.