A title commitment is like a mortgage commitment letter. It's an approval to insure where the mortgage commitment letter is an approval to lend. Both commitments set out terms and conditions.
A title commitment is typically in a standard format created by ALTA - American Land Title Association. There is a jacket which gives definitions and other important information. Schedule A sets out the proposed insurance coverages and reports who currently owns the land being insured. Schedule B 1 sets out conditions which must be cleared prior to the closing or issuance of the insurance. Schedule B 2 identifies potential exceptions to coverage. Somewhere on Schedule A or in a Schedule C you will see a legal description.
It is really important that the consumer and the mortgage lender receive and review the title commitment as soon as possible and PRIOR to closing.
After closing, the title policy will be issued, often after the recorded documents have been returned from the courthouse. Consumers and lenders should expect to receive the title policy within 60 days after closing.
A title commitment is typically in a standard format created by ALTA - American Land Title Association. There is a jacket which gives definitions and other important information. Schedule A sets out the proposed insurance coverages and reports who currently owns the land being insured. Schedule B 1 sets out conditions which must be cleared prior to the closing or issuance of the insurance. Schedule B 2 identifies potential exceptions to coverage. Somewhere on Schedule A or in a Schedule C you will see a legal description.
It is really important that the consumer and the mortgage lender receive and review the title commitment as soon as possible and PRIOR to closing.
After closing, the title policy will be issued, often after the recorded documents have been returned from the courthouse. Consumers and lenders should expect to receive the title policy within 60 days after closing.
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