Commitment for owner’s title insurance policy
Title Commitment: What is it?
So you have closed the deal for a new home. Congratulations for it. After signing the purchase deal, the seller must have given you a bunch of papers in the name of title commitment which would have confused you. Right? Well, you do not have to worry about what is to be done with those papers as title commitment is nothing but a promise made by your title company to provide a little insurance for your newly owned property. It contains all those terms and conditions that are present in an actual insurance policy. So now you have double reasons to celebrate.
A mistake that many people do is that they do not review the title commitment. It is true the commitment for owner’s title insurance policy will cover title’s problems but not all of them. Infact, the title company will cover only those issues that is likely to come in the long run. It lists most of the exclusions as exceptions and when you encounter any of these exceptions, they will simply say that it is your responsibility and not theirs. Thus, home owners are advised to review the title commitment thoroughly so that you are prepared for the unexpected surprises or say exceptions as per your title company. Also, property owners have the provision to get certain exceptions removed if they are unpermitted. They can even ask the title insurer to provide you insurance against such exceptions. However, this has to be done within 30 days of receiving the title commitment.
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