YOU ASK:

Are title commitment, title binder, title opinion, title report the same?

WE ANSWER:

Yes, a rose by any other name smells just as sweet and a title report by any other name provides essentially the same information.

Title commitment, title binder, title opinion and title report all denote the report submitted by a title searcher. It serves as the binding instrument by which the title is being insured by a title company. When the title commitment is issued, the title insurance company is committed to provide insurance coverage to the property once the requirements and conditions are met.

A title commitment is a result of a thorough title search, where public records are examined and checked to see whether there are potential problems in the ownership status of the title. The title commitment will list down all the problems related to the title and contains information as to the property, the lender and the buyer. It will also list down the exclusions that will not be covered in the policy.

Some of the requirements that the title commitment might have will be:

  • Proof of the new mortgage of the buyer
  • Proof that the seller has paid off his current mortgage
  • A copy of the appropriate deed transferring ownership
  • Payment of fees and taxes related to the property, such as assessment fees and taxes
  • Survey of the property, as well as any improvements added
  • Proof that the seller has paid off or satisfied any liens against the property

The title commitment will also outline the exceptions to be excluded in the insurance policy, such as:

  • Restrictions or covenants affecting the use of the property and are readily found in the public records
  • Claims that exist but at the time of the title search were not in the records
  • Easements and liens that exist but at the time of the title search were not shown in public records
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