Title Commitment vs Title Report

January 28, 2015

Do you know the difference between a title commitment and a title report? While these documents may sound similar at first, they actually serve very different purposes and should not be confused. As your trusted title company at the Lake of the Ozarks, Arrowhead Title is here to help clear up any misunderstandings you may have about title commitments and title reports.

Title Commitments

Title commitments are issued when someone is in the process of buying a home or piece of property. After the title search has been conducted (that is, after your title company has thoroughly researched the public documents for any pertinent information regarding the property), the next step is to issue the title commitment.

The title commitment is exactly what it sounds like: a commitment to provide title insurance to the lender and the buyer under the terms described. The title commitment outlines the conditions and exceptions that will impact the title insurance policy.

Conditions to the Title Commitment are requirements that must be met in order for the title insurance policy to be issued. Examples of these conditions include:

The seller paying off his/her mortgage
Payment of all liens against the property at the time of sale

Exceptions to the Title Commitment outline certain situations that the title insurance policy will not cover. These exceptions typically include things like:

CCR's (Covenants, Conditions, and Restrictions) concerning your use of the property

Thanks to the title commitment, the lender and buyers know exactly what will be covered and what will not be covered in their title insurance policy.

Title Reports

Unlike title commitments, title reports generally not issued during a real estate transaction. Instead, title reports are issued to people who simply want to know more about or conduct an investigation on a piece of property, such as:

Heirs who have recently come into possession of the property
Non-profit organizations who are having a piece of property donated to them
Divorced men/women who want to know if their ex still has some ownership of the property
Anyone else who wants to know what's really going on with their property, including:

Banks
Attorneys
People who are thinking about selling their home

People obviously order title reports for a variety of different reasons, then, but they usually are not involved in a real estate closings.

Keep in mind that a title report is just that - a report containing valuable information regarding a specific piece of property. The title report is not an agreement to provide title insurance to the buyer or current owner of a piece of property. If you want to purchase title insurance to protect your investment on a piece of property, you will have to do so separately.

Arrowhead Title - We've Got Your Back!

If you're in need of a title insurance company at the Lake of the Ozarks, give Arrowhead Title a call! We've been serving the Lake Area since 1984, and we are dedicated to serving each of our clients with the utmost integrity and accuracy. We would be honored to help you with all of your title insurance needs!

The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!