Question 1

What is a title commitment?

Accepted Answer

A title commitment is a document issued by a title insurance company that describes the conditions under which the company will issue a title insurance policy. In Florida: the title commitment includes: Schedule A (the proposed insured, the type of policy, the property description, and the current vested owner), Schedule B-I (requirements that must be met before the policy will be issued: payoff of existing mortgages, satisfaction of liens, and recording of the deed), and Schedule B-II (exceptions: items that will not be covered by the policy: easements, restrictions, and encumbrances). The commitment: is a preliminary document; the actual title policy is issued after closing.

Question 2

What should be reviewed in a Florida title commitment?

Accepted Answer

Review: the vested owner (confirm the correct owner is listed), the legal description (confirm accuracy), liens and encumbrances (review Schedule B-II for: mortgages, judgments, tax liens, easements, and restrictions), requirements (Schedule B-I: items that must be completed before closing), and exceptions (Schedule B-II: items excluded from coverage: survey exceptions, environmental matters, and zoning). The buyer’s attorney: should review the commitment and raise objections to any title defects or unacceptable exceptions before closing.

Question 3

What is the difference between a title commitment and a title policy?

Accepted Answer

Distinction: the title commitment (a preliminary document: shows the title company’s willingness to insure; lists requirements and exceptions; issued before closing), and the title policy (the actual insurance contract: issued after closing and recording; provides coverage against title defects up to the policy amount). The commitment: is not insurance (it does not provide coverage; it is a promise to insure if the requirements are met). The policy: provides actual protection. Cost: in FL, the title insurance premium is set by regulation and is based on the purchase price.

Title Commitment

Title Commitments in Florida

Schedules

Review Points

vs. Title Policy

Related Terms

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