What does the term "pre-commitment" refer to in title insurance?

The term "pre-commitment" in title insurance refers to a document that outlines items affecting title before the policy is issued. This document is essential because it provides information on any potential issues or claims that may impact the property’s title. By identifying these matters beforehand, it allows all parties involved—such as buyers, sellers, and lenders—to understand any encumbrances, liens, or other defects that could affect the property's ownership rights.

This preliminary assessment helps in ensuring a smoother transaction and can assist in resolving any title issues prior to closing. It serves as a crucial tool to protect the interests of the buyer and lender by clarifying the status of the title before the full title insurance policy is established. This process enhances transparency and can also expedite the closing process by preemptively addressing concerns that might otherwise arise later.