A title commitment consists of which three components?

A title commitment consists of which three components?

• A. A deed, a mortgage, and a survey
• B. A report, an application, and a statement
• C. A map, a plan, and a warranty
• D. A policy, a rider, and a closing statement

Answer: (B)

A title commitment is a preliminary promise from the title insurer to issue a policy, based on information gathered up front. The three parts that make up this commitment are the title report, the application, and a statement. The title report shows what the title search found: who owns the property, what liens or encumbrances exist, and any defects that could affect title. The application is the form the buyer or lender completes to order title insurance, providing who is insured, the property description, loan amount, and other details. The statement (often called the commitment itself) outlines the terms under which the insurer will issue the policy, including the insured amount and any conditions or requirements that must be satisfied before the policy can be issued. The actual policy, along with any rider and closing documents, is issued later and is not the same as the commitment.

A title commitment is a preliminary promise from the title insurer to issue a policy, based on information gathered up front. The three parts that make up this commitment are the title report, the application, and a statement. The title report shows what the title search found: who owns the property, what liens or encumbrances exist, and any defects that could affect title. The application is the form the buyer or lender completes to order title insurance, providing who is insured, the property description, loan amount, and other details. The statement (often called the commitment itself) outlines the terms under which the insurer will issue the policy, including the insured amount and any conditions or requirements that must be satisfied before the policy can be issued. The actual policy, along with any rider and closing documents, is issued later and is not the same as the commitment.