Western Title is proud to announce the retirement of our preliminary title reports and the implementation of our new title commitments for each and every escrow moving forward.
What is the difference between a Report and a Commitment?
While a preliminary title report conveyed valuable information about a specific property, the title commitment is all that and more. It is a promise that we, the title company, and our underwriter will provide title insurance coverage for the property.
What is a Title Commitment?
Like it says above, a title commitment is an offer to provide title insurance coverage for a property assuming the future owner accepts the exclusions and the seller handles the existing conditions on the title.
The title commitment is broken down into three sections called Schedules. Schedule A sets forth the types of policies to be issued, the proposed insured parties, as well as the current owner and description of the property. Schedule B Part 1, includes the items required to close the escrow and insure, including matters that need to be dealt with by payment, documentation etc., and a list of conditions that must be met (such as an unpaid sewer bill or paying off the current mortgage). Schedule B Part 2, shows all other matters affecting the property, (such as CC&R's or an easement on the property for a fire hydrant)that will remain on the title policy.
Why is it color-coded?
Based on the contents of the Commitment, our title department will color-code the report to make it easy to know how simple or complicated a deal may be. Green indicates there are no adverse matters found on the title, yellow means some particular matters have been found that require special attention by all parties, and red says there are major issues with may delay closing and need immediate attention.
Want to know more?
All in all, Western Title's new Title Commitment will help us better protect buyers and sellers of property in Nevada. To find out more about our new Commitment, please call 775.332.7100 or email firstname.lastname@example.org.