What's The Purpose Of A Commitment For Title Insurance?

It's time! After months of searching and negotiating, you've finally found your dream home and come to an agreement with the sellers. You know how much you're paying for the home and what is included in the purchase, and your loan approval process is well underway. Should be smooth sailing from here, right?

Hopefully, yes, but there is one last step standing in between you and the purchase of your home: the commitment for title insurance. This detailed report will provide you with a description of the current owner of the home and any outstanding liens and encumbrances that may be placed on the title. Before continuing with the purchase of your home at the Lake of the Ozarks, it is important to look over the commitment for title insurance thoroughly and make sure there aren't any major issues with the property.

What's Contained In A Commitment For Title Insurance?

The commitment report contains valuable information about the state of the title and outlines the conditions under which your title insurance policy will be issued, should you decide to purchase the home. Specifically, the commitment for title insurance will include information about the lien and/or easements on the property.

Liens are placed against properties when the owners failed to make necessary payments on money they owe. Liens can be placed by any creditor who has not received promised payment, such as city tax departments or utility companies. See our earlier blog for a more in-depth description of the different types of property liens. In many cases properties cannot be sold while liens are in still in effect.

An easement is a legal right to use property that you do not own for some specific purpose. An example of a common property easement is a utility company installing water pipes or electric wires underground. The individual granted the easement will not be able to use the property for any other purpose. Depending on the specific details of the easement, the property owner also may not be able to use the piece(s) of land in question for any other purpose. If you purchase property with easements in effect, you will be subject to the same restrictions as the previous owner.

Why Is The Commitment For Title Insurance So Important?

The commitment for title insurance is a crucial part of the home buying process for both the buyer and the title company at the Lake of the Ozarks. For the buyer, the commitment contains vital information concerning the property and the status of the title. For the title company, the commitment for title insurance outlines the conditions under which the title policy would be issued. 

When you receive a commitment for title insurance, it is important to look over the report carefully. If you have any questions about the contents of the commitment, ask your real estate professional or your local title insurance agency

The Lake of the Ozarks' Most Trusted Title Company


  1. Thanks for sharing this informative article with us. We are a leading
    Title Search Services company in USA.


Post a Comment

Popular posts from this blog

Title Commitment vs Title Report

9 Fun Facts About Title Insurance

Why Would I Need a Title Search vs Owners and Encumbrance