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A "Commitment to Insure" or "Title Commitment" is
a report
containing a summary of any defects in title which have been identified by the
title search, as well as any exceptions from the title insurance policy's
coverage. As well, the commitment includes the tax and lien search.
You can arrange for the commitment to include the chain of title.
Millennium Title, Inc. endorses
HUD's Final Rule Prohibiting Property
Flipping.
Within 3-5 business days of the commitment being ordered, it is completed and sent to the real estate agents,
the lender and any other applicable party
for use until the title insurance policy is issued at or after settlement.
You should arrange to have a copy sent to you or your attorney, so that you can
object if there are matters affecting the title which you did not agree to
accept when you signed the agreement of sale.
The lender is as concerned as the buyer about the quality of the title
because the property is to be security for the new mortgage. The mortgage
lender requires assurance that it has a valid first (or another acceptable
priority) mortgage lien on the property.
The provisions of a
lender's title insurance policy are very different from those of an owner's
policy, the lender's title insurance policy does not protect the interest of the
new buyer of the property.
Millennium Title, Inc. recommends that all
purchasers of new property should obtain an Owner's Policy.
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