Are you buying or selling a property in Ohio or Kentucky? Knowing what a title commitment is and why it matters can help make your real estate transaction smoother. At Northwest Law, our team is highly experienced in real estate law in Ohio and Kentucky, and we’re here to guide you through the legal side of property deals.
What is a Title Commitment?
A Title Commitment is a commitment to issue title insurance.
It is essentially a promise to issue a title insurance policy under specific conditions. It outlines what needs to be addressed before the final issuance of the policy, ensuring that any issues affecting the title are identified and resolved. It is not the actual title insurance policy, but rather a commitment from the title insurance company to issue one once all outlined conditions are met.
This means the commitment serves as a preview of the policy, showing what will and will not be covered once the transaction is completed and the policy is issued.
In Ohio and Kentucky, a Title Commitment is a formal document issued by a title insurance company that outlines the conditions under which a title insurance policy will be issued for a property. It details the legal ownership of the property and any encumbrances or restrictions that may affect the title. To prepare a Title Commitment, a title company conducts a detailed search of public records related to the property. It typically includes key information about who owns the property, any liens (money owed on the property), and other issues that might affect your ownership rights.
- Schedule A – Basic information about the property, such as the legal description, current ownership, and proposed policy coverage.
- Schedule B-1 – Lists requirements that must be met for the title insurance to be issued, like paying off outstanding mortgages.
- Schedule B-2 – Exceptions that will not be covered by the title insurance, such as easements, restrictions, or prior liens.
Why is a Title Commitment Important?
This document is essential during real estate transactions in Ohio and Kentucky as it allows buyers and lenders to understand any potential title issues before closing.
Clear Ownership: A title commitment proves that the seller legally owns the property and has the right to sell it. For example, if a seller doesn’t have a clear title, you could end up buying a home that someone else has a claim to. The title commitment ensures this won’t happen by confirming clear ownership rights.
Identifying Issues: Reviewing the title commitment helps you spot problems like unpaid property taxes, mortgages that haven’t been released, or liens that might still be on the property. For example, if there’s an unpaid tax lien on the house, you’ll know before closing, and you won’t be able to close until issues are resolved.. However, addressing these issues early prevents future legal headaches.
Title Insurance Protection: An owner’s policy protects your interests and gives you peace of mind in homeownership. In basic terms, title insurance protects you from losing money if an issue is missed during the search and review phases. For example, if a long-lost heir suddenly claims they own the property, title insurance may cover legal defense costs and financial loss.
How Ohio and Kentucky Real Estate Counsel Can Help
At Northwest Law, our team of experienced real estate attorneys helps clients in Ohio and Kentucky understand and manage real estate transactions. We carefully review title commitments, ensuring no hidden problems could hurt your deal.
Whether buying your first home, investing in property, or developing a commercial project, having skilled legal counsel can help you avoid costly mistakes. Our attorneys are committed to protecting your rights and guiding you through every step of the property transaction process.
Reach out to the Real Estate Lawyers at Northwest Law Today
Protect your real estate investment now. Contact Northwest Law today to set up a consultation with our experienced real estate lawyers. Don’t overlook the importance of a title commitment—it’s your key to ensuring your property purchase is secure. Get the advice and guidance you need to protect your purchase.