A preview of proposed coverage
A title commitment describes the terms on which a title insurer proposes to issue a policy if stated requirements are met. It is not the final title insurance policy or a guarantee that every matter affecting the property has been found. Other preliminary title documents may be used in some markets.
The document may identify the property, the current vested owner, the proposed insured, the amount of insurance, and the estate or interest to be insured. Names and labels vary by form and state.
Requirements versus exceptions
Requirements identify items to address before the proposed policy can be issued. They may involve paying an existing loan, recording a release, obtaining signatures, or recording a deed.
Exceptions identify matters outside the proposed coverage as stated. Examples can include easements, restrictions, or other recorded interests. Some exceptions can change if the insurer accepts additional evidence or work. Do not assume an exception disappears simply because closing occurs.
A focused review before closing
Read the whole document, including schedules, conditions, and attachments. Then ask:
- Are the owner, property description, and proposed insured parties correct?
- Which requirements remain open, and who will complete them?
- Do any exceptions affect my planned use, access, or future sale?
- What changes should I expect between this document and the final policy?
These guides are general education. Processes and documents vary by transaction and state. The terms of any issued policy control coverage. Ask your title or closing team about your documents, and take legal or tax questions to your own attorney or adviser.