In almost every contract for real estate, the seller will agree to provide title insurance to the buyer. We will send you “title commitments” before closing for your review. The title commitment is our commitment to issue a title insurance policy following closing. It contains the same conditions, exclusions, and terms as the actual policy. The title commitment identifies all requirements that must be met prior to closing to issue the title insurance policy.
Cities Title, like most title companies in the United States, uses standard forms to create title commitments and policies. These forms are distributed through the American Land Title Association. The ALTA title commitment is a standard ALTA title agreement that covers many of the same things as your specific title commitment.
This section of the title commitment includes the basic information of the transaction. It contains the names of those who hold the current title, the legal description of the property, the proposed buyer (insured), the sale price and the lender’s name. These items should be correct.
This section of the title agreement is divided into two parts: “Requirements”, and “Exceptions.”
The Requirements Section lists everything that needs to be addressed before or at the end of the document, including:
Taxes to be paid
Payment of existing mortgages by the seller
Release of liens on title
Recording any new loan documents and the new deed
Correction of any typographical errors
This section describes the items that are not covered by the title insurance policy. Examples include:
Mineral and water rights
Utility and Access Easements
Covenants and Restrictions of Homeowner Associations
Existing Plat Restrictions
Please review the exceptions to understand how they could affect your ownership and use of the property. Our title commitments include hyperlinks that lead to specific documents recorded at the County Clerk and Records Office. It is easier to view specific documents.
Please do not hesitate to contact us if you have any questions regarding a specific Requirement, or Exception. We are happy to answer any questions that you may have about your title commitment and will do our best to clear up any confusion before closing.