Title Commitment is an initial title report. It shows the parties in which title to the property is vested and any liens or encumbrances.

Title is synonymous with ownership. Title examination is primarily the process of determining whether the title is marketable of record, that is, whether the ownership appears subject to encumbrances or to reasonable doubt of validity.

Title Guaranty Commitment is a contract by which the title company guarantees, according to its terms and up to a given amount, that title land is good and unencumbered of record in the named owner, excepting only the defects and encumbrances set forth in the contract. This type of title evidence differs from a Title Opinion in that absence of negligence is not a defense against ensuring good title. It is distinguished from Title Insurance in being protection only against matters which appear of record.

Title Insurance Commitment obligates a title insurance company to pay any loss, up to the amount stated in the policy, suffered by the insured because of defects in title or encumbrances existing at the date of the policy which are not expected by the policy. The insurance protects against omissions and errors of the title examiner, and also against the many unrecorded claims which may be enforceable against a bonafide purchaser. Further, the insurer agrees to defend against alleged defects and encumbrances, and to pay the expenses of litigation, even if the claims are invalid. The insured is protected even after they have conveyed the property with a warranty. The protection extends to the heirs and devisees of the insured but is generally not assignable. The three principal forms are:

  • Owner's Policy of Title Insurance- insuring the owner of the title
  • Mortgage Policy of Title Insurance- insuring the holder of a mortgage on the premises
  • Lessee's Policy of Title Insurance- insuring the owner of a leasehold interest in the premises

Title Opinion is the written opinion of a lawyer that the title to the described land is marketable and unencumbered excepting only the defects and encumbrances set forth in the opinion.