FAQs About The Title Commitment

Posted on: 31 December 2015

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During the process of buying a home, there are many documents that you will need to review with your real estate attorney. Among those documents is the title commitment. If you fail to properly review it, you could be in for surprises later. If you are in the process of purchasing a home, here is what you need to know about the title commitment. 

What Is the Title Commitment?

The title commitment is the document detailing the title's company commitment to issuing an insurance policy for your home after closing is completed. All of the terms in your insurance policy should be included in the commitment. 

The insurance provided by the title company helps to provide you with protection for your property if there is an issue that arises that causes problems with your title. This insurance is not designed to take the place of any other type of insurance your lender expects you to purchase. 

What Are You Looking For?

When reviewing your title commitment, it is important that you pay close attention to what is and is not covered. You also need to be aware of exceptions to your coverage. Exceptions can create problems for you later. 

For instance, if you receive notice that your neighbor has an ongoing easement that allows him or her to store building materials in your yard, any damage caused by it might not be covered by the insurance policy. As a result, you could be out-of-pocket for the damages. Worse yet, you could foot the legal bills associated with fighting the neighbor's ability to store items in your yard. 

Exceptions can also fail to cover changes that you are required to make according to local codes or by your homeowners association. For instance, if you are required to remove a structure in your yard due to code violations, you would have to pay the bill if there is an exception in place. 

What Can You Do?

If you review the title commitment and find it to be unacceptable, you and your attorney can take steps to resolve issues that could come up later. Using the previous example, your attorney could negotiate with the current owner of the home to have the structure removed before you take ownership of the home. 

Work with a real estate attorney, like Levin & Levin, LLP - Attorneys at Law, to carefully review your title commitment and other documents before closing on your home. He or she can ensure that you are being treated fairly in the process and that you are avoiding future possible challenges.