The title commitment is formed in connection with an application for title insurance and includes a report, an application, and a statement.

The title commitment is formed in connection with an application for title insurance and includes a report, an application, and a statement.

• A. Only an application
• B. True
• C. A report, an application, and a statement
• D. Only a report

Answer: (C)

The key idea is that a title commitment is issued in response to an application for title insurance and is composed of three parts: the report, the application, and a statement. The report provides the preliminary title search results (showing ownership, encumbrances, and defects). The application contains the information supplied by the applicant about the property and the desired insured amount. The statement lays out the insurer’s terms, conditions, and any exceptions or requirements that must be met before a policy can be issued. Together, these three documents form the commitment that the title company offers to insure the title, pending satisfaction of the stated requirements.

The key idea is that a title commitment is issued in response to an application for title insurance and is composed of three parts: the report, the application, and a statement. The report provides the preliminary title search results (showing ownership, encumbrances, and defects). The application contains the information supplied by the applicant about the property and the desired insured amount. The statement lays out the insurer’s terms, conditions, and any exceptions or requirements that must be met before a policy can be issued. Together, these three documents form the commitment that the title company offers to insure the title, pending satisfaction of the stated requirements.