What does a title insurance commitment primarily show?

A title insurance commitment primarily shows the condition of the title and includes the legal description of the property. This document is essentially a promise from the title insurance company to issue a title insurance policy, provided certain conditions are met. It outlines specific details about the property’s title, including the current ownership and any existing encumbrances or liens that may affect ownership.

The legal description provided is crucial as it accurately identifies the specific parcel of land involved. Understanding the title's condition helps both buyers and lenders assess the risks related to property ownership. This information is foundational for ensuring that the buyer receives clear and marketable title at closing. The commitment also indicates any exceptions to coverage that the title insurance will not cover, which is pivotal for informed decision-making in real estate transactions.

Other choices, such as the estimated value of the property, urgency of the buyer's decision, and inspection reports, do not encompass the primary purpose of a title insurance commitment, which focuses solely on the title's legal status rather than property valuation, buyer decision timelines, or property inspection findings.