It’s easy to get lost in the mountains of paperwork when purchasing real estate. One document in that mountain, called the commitment to issue title insurance, is both extremely important and guaranteed to make most folks’ eyes glaze over. A potential buyer of property will receive a commitment to issue title insurance after both buyer and seller have signed the purchase and sale agreement, but before closing. This blog post will help buyers under contract understand the commitment to issue title insurance they receive for the property they are in the process of purchasing.
First, though, by “title,” I mean the legal right to own a particular property. “Title Insurance” is an insurance policy which protects that right of ownership.
Almost all commitments to issue title insurance and title insurance policies in the US use the American Land Title Association (ALTA) form and are organized the same way:
The commitment to issue title insurance is an important part of the real estate closing process, but many people overlook it. Do yourself a favor. Pay careful attention to the commitment to issue title insurance and ask a lawyer if you have concerns.
Disclaimer: This article and blog are intended to inform the reader of general legal principles applicable to the subject area. They are not intended to provide legal advice regarding specific problems or circumstances. Readers should consult with competent counsel with regard to specific situations.
To receive updates or be informed when we post a new article.