What is a Title Commitment or Binder primarily used for?

A Title Commitment, also known as a Title Binder, is primarily used for outlining the requirements and conditions that must be satisfied before the issuance of a title insurance policy. It serves as a preliminary report that identifies the current status of the property's title, including any liens, encumbrances, or other issues that may need resolution prior to closing the sale. This document is crucial for both buyers and lenders because it provides transparency about what is needed to ensure a clear title and facilitates a smooth property transfer.

The other options, while relevant in certain real estate contexts, do not accurately define the primary purpose of a Title Commitment. Providing an estimate of insurance premium, for instance, may be part of the overall transaction process but is not the core function of the Title Commitment itself. Identifying potential buyers is more closely associated with marketing strategies rather than the title review process. Lastly, setting the sale price of the property is determined through negotiation between the buyer and seller and is also outside the scope of what a Title Commitment addresses.