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Title commitment

BamaGuy
Established Contributor

Title commitment

My "processor" says he's waiting on the title company release a commitment letter. What does that mean?
Message 1 of 3
2 REPLIES 2
StartingOver10
Moderator Emerita

Re: Title commitment

The seller has to deliver clear title to you. One of the duties is to deliver a title commitment outlining the inclusions and exclusions of the title coverage.   Here is a link to a good explanation of how to read a title commitment: https://www.ltgc.com/files/technicalbulletins_customers/TipsForReadingTitleCommitment_Jul08.pdf

 

It is from a particular title co - but the process is the same with all title co's. Pay special attention to the exclusions on your policy. If you have a survey then quite a few of the exclusions can be removed (that is a good thing).  You might want to have an attorney review your title for you because the title insurance policy is based on the title commitment. You can get an attorney to review it for a small fee.

 

Your lender will review the title commitment to make sure it conforms to their standards. But remember this, your lender is looking out for them and not for you. That is the reason I suggest having someone that is workng on your behalf to review the title. The sellers' title co is supposed to be an independant third party, but the reality is this: they have the seller as a client, not the buyer.

Message 2 of 3
BamaGuy
Established Contributor

Re: Title commitment

Thanks for that input. I'll have my family attorney look it over.
Message 3 of 3
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