What is referred to as a title industry form that acts as a preliminary report of title?

A title commitment is a crucial document in the real estate transaction process that provides a preliminary report of title. It outlines the conditions that must be met for the issuance of a title insurance policy. This commitment details the current status of the property's title, including any potential issues or liens that may need to be resolved before the closing of the transaction. It serves as a valuable tool for both buyers and lenders, allowing them to understand any encumbrances or claims against the property that could affect ownership.

The title commitment assures all parties in a transaction that the title insurance will be issued, provided that the specified conditions are fulfilled. It acts as a roadmap, making both buyers and lenders aware of the title’s history and any present irregularities that could pose challenges in the future.

In contrast, a title report merely summarizes existing title information without the same level of detail concerning specific conditions for insurance issuance. A title policy, on the other hand, is the actual insurance document that protects the policyholder against losses related to title defects after closing. Lastly, a title abstract is a summary of the legal history of a property, but it does not confirm commitment to title insurance or detail closing conditions as a title commitment does. Therefore, the title commitment is the appropriate choice