If you’ve recently signed the purchase agreement on your first property, you might find yourself a little overwhelmed with some of the terms that can arise during the sale. Understanding the terms that arise is an important part of making sure you fully comprehend everything you’ve agreed to and avoid trouble later on. One of the more confusing items that new home buyers encounter is called a “title commitment.” This can also be called a “title report.”


If you’re wondering what this complicated-looking document is all about, we’ve got you covered. In this blog, our team at Liberty Title will walk you through what a title commitment is all about and what it means for you as a home buyer.


What is a Title Commitment?

In a nutshell, a title commitment is a promise to issue a title insurance policy to protect the closing of a sale. It begins with a title search for the property in question. The title abstract agent will research public records to find any existing problems that could cause a hitch during closing. They’re looking for problems that arise from past liens, divorce filings, wrong information, and anything else that could cause the title to be unclear. They’ll put the results of their findings into a public report. This report is called the title commitment.


How Does a Title Commitment it Protect Me?

Your title commitment makes it possible for you to have title insurance. Title insurance protects the buyer of a property in case an unknown problem should arise down the road that affects the property’s title. Your lender will require insurance during the process to protect them against these types of problems, as well. This keeps you and your lender from getting caught up in lengthy court proceedings and losing your investment down the road.


Here are some problems title insurance protects you from:

●        Missing heirs

●        Fraud

●        Inaccurate boundaries

●        Problems with liens


Minnesota Title Abstractors and Title Insurance

While it’s true there’s a lot to keep track of during your purchase of a property, it doesn’t have to be too confusing. With a good support team to walk you through the process, you’ll be ready to enjoy the fruits of your labor in no time.


At Liberty Title, we offer title abstract services and title insurance for buyers. Contact us at 763.494.0340, or contact us to learn more about how we can help you through the closing process.