Title Commitment

Although the average time it takes for a lender to completely close a mortgage is 53 days, it could be as little as 15 days. The actual timing of the mortgage commitment letter arriving in escrow depends on many factors and must arrive before the house can close.

Two basic types of title insurance policies are available to owners of real property in California: (1) a standard coverage policy and (2) an extended coverage policy. A standard policy insures primarily against defects in title which are discoverable through an examination of the public record.

A title commitment (or whatever name yours goes by) is basically the title company's promise to issue a title insurance policy for the property after closing. The title commitment contains the same terms, conditions, and exclusions that will be in the actual insurance policy.

A title commitment is a document that iterates the details surrounding the property. It lists the various requirements, exclusions, and exceptions behind issuing title insurance on the property. It's also a promise to issue title insurance as long as all stipulations in Section B are met.

The title commitment is essentially our promise (i.e., commitment) to issue the title insurance policy after closing, and contains the same terms, conditions and exclusions that will be in the actual title insurance policy.

Once all requirements and conditions are met, then the Title Insurance policy is issued. A Title Commitment Review is generally conducted by the professional surveyor conducting the ALTA/ACSM Land Title Survey, an attorney or a third party due diligence firm.

Title commitments are most often presented on a standard form distributed by the American Land Title Association or ALTA. The ALTA form contains a section generally known as the Schedule B Section II. This is a list of exceptions to coverage offered by the title insurance policy.