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Questions and Answers
What does the commitment specifically state regarding claims or remedies sought against the company?
What does the commitment specifically state regarding claims or remedies sought against the company?
Which of the following accurately describes the obligations of the company under this commitment?
Which of the following accurately describes the obligations of the company under this commitment?
What happens if the Schedule B, Part I-Requirements are not met within six months after the Commitment Date?
What happens if the Schedule B, Part I-Requirements are not met within six months after the Commitment Date?
What is indicated about the procedures used to determine the insurability of the title?
What is indicated about the procedures used to determine the insurability of the title?
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If this commitment was created electronically, what does it constitute?
If this commitment was created electronically, what does it constitute?
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Which part of the commitment outlines the exceptions to the policy?
Which part of the commitment outlines the exceptions to the policy?
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What must be included in Schedule A for the commitment to be effective?
What must be included in Schedule A for the commitment to be effective?
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What does the commitment explicitly state about the abstract of title?
What does the commitment explicitly state about the abstract of title?
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What is the primary liability of the Company once the Policy is issued?
What is the primary liability of the Company once the Policy is issued?
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What is the role of the issuing agent in the context of title insurance commitments?
What is the role of the issuing agent in the context of title insurance commitments?
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What does a pro-forma policy illustrate?
What does a pro-forma policy illustrate?
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What is the maximum Proposed Policy Amount that allows for arbitration as the exclusive remedy?
What is the maximum Proposed Policy Amount that allows for arbitration as the exclusive remedy?
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Which document must accompany each transfer of title in Wyoming?
Which document must accompany each transfer of title in Wyoming?
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What is required for the Proposed Insured before the Company issues a title insurance policy?
What is required for the Proposed Insured before the Company issues a title insurance policy?
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What condition must be met regarding documents conveying the title or creating the mortgage?
What condition must be met regarding documents conveying the title or creating the mortgage?
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Who must provide a Warranty Deed as part of the title insurance process?
Who must provide a Warranty Deed as part of the title insurance process?
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What does the term 'Fee' refer to in Schedule A of the Commitment?
What does the term 'Fee' refer to in Schedule A of the Commitment?
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What must the Proposed Insured provide regarding their business structure?
What must the Proposed Insured provide regarding their business structure?
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What happens to the Commitment once the Policy is issued?
What happens to the Commitment once the Policy is issued?
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Where can the Proposed Insured find the arbitration rules?
Where can the Proposed Insured find the arbitration rules?
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What is the purpose of additional Requirements or Exceptions from the Company?
What is the purpose of additional Requirements or Exceptions from the Company?
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What does the term 'Land' refer to in the Commitment?
What does the term 'Land' refer to in the Commitment?
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What is the consequence if the Schedule B, Part I—Requirements are not met within the specified time period?
What is the consequence if the Schedule B, Part I—Requirements are not met within the specified time period?
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Under what condition is the Company’s liability limited according to Commitment Condition 4?
Under what condition is the Company’s liability limited according to Commitment Condition 4?
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Who may make a claim under this Commitment?
Who may make a claim under this Commitment?
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What must happen for the Policy to be issued according to Commitment Condition 5(f)?
What must happen for the Policy to be issued according to Commitment Condition 5(f)?
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What is the Company’s liability limited to if an amendment reveals a previously unknown issue according to Commitment Condition 5(a)?
What is the Company’s liability limited to if an amendment reveals a previously unknown issue according to Commitment Condition 5(a)?
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What does 'Construction notice' not include as stated in the definitions?
What does 'Construction notice' not include as stated in the definitions?
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What must be included for this Commitment to be valid?
What must be included for this Commitment to be valid?
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If a Proposed Insured has knowledge of a matter and does not notify the Company, what happens to the Company's liability?
If a Proposed Insured has knowledge of a matter and does not notify the Company, what happens to the Company's liability?
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What happens to the obligations of the Company if the Proposed Insured requests an amendment?
What happens to the obligations of the Company if the Proposed Insured requests an amendment?
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What is one of the specific consequences of modifying or deleting any Schedule B, Part II—Exceptions?
What is one of the specific consequences of modifying or deleting any Schedule B, Part II—Exceptions?
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What type of notice does 'Public Records' provide?
What type of notice does 'Public Records' provide?
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Which of the following must the Company do if it amends the Commitment to add a defect or claim?
Which of the following must the Company do if it amends the Commitment to add a defect or claim?
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What is the main focus of the definition for 'Mortgage' in this Commitment?
What is the main focus of the definition for 'Mortgage' in this Commitment?
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What is the primary purpose of a Commitment for Title Insurance?
What is the primary purpose of a Commitment for Title Insurance?
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What should buyers focus on specifically when reviewing their Commitment for Title Insurance?
What should buyers focus on specifically when reviewing their Commitment for Title Insurance?
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Which type of ownership interest is considered the highest in property rights?
Which type of ownership interest is considered the highest in property rights?
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What role do recorded matters play in the Commitment for Title Insurance?
What role do recorded matters play in the Commitment for Title Insurance?
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What happens to exceptions listed in the Commitment for Title Insurance?
What happens to exceptions listed in the Commitment for Title Insurance?
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What is a common type of lien that might be found in a Commitment for Title Insurance?
What is a common type of lien that might be found in a Commitment for Title Insurance?
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When is the Commitment for Title Insurance typically produced?
When is the Commitment for Title Insurance typically produced?
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Which of the following is NOT mentioned as something a Commitment for Title Insurance might include?
Which of the following is NOT mentioned as something a Commitment for Title Insurance might include?
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What is the general nature of interests of third parties noted in the Commitment for Title Insurance?
What is the general nature of interests of third parties noted in the Commitment for Title Insurance?
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What should parties to a real estate transaction do once they have received the Commitment for Title Insurance?
What should parties to a real estate transaction do once they have received the Commitment for Title Insurance?
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What must accompany the Commitment for it to be considered valid?
What must accompany the Commitment for it to be considered valid?
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Which of the following is NOT an exception listed under Schedule B, Part II?
Which of the following is NOT an exception listed under Schedule B, Part II?
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What kind of claims does the Commitment NOT insure against, according to the provided content?
What kind of claims does the Commitment NOT insure against, according to the provided content?
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Which scenario would NOT influence the title according to the exceptions in Schedule B, Part II?
Which scenario would NOT influence the title according to the exceptions in Schedule B, Part II?
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How is the status of the taxes for the year 2018 described?
How is the status of the taxes for the year 2018 described?
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Which type of interest is exempt from coverage due to its lack of documentation in Public Records?
Which type of interest is exempt from coverage due to its lack of documentation in Public Records?
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What is one of the primary purposes of the Commitment for Title Insurance?
What is one of the primary purposes of the Commitment for Title Insurance?
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Which of the following is related to provisions imposed by law that are not recorded?
Which of the following is related to provisions imposed by law that are not recorded?
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What factor does NOT constitute a defect in title as per the exceptions?
What factor does NOT constitute a defect in title as per the exceptions?
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Under what condition will the Policy insure against losses related to leases or easements?
Under what condition will the Policy insure against losses related to leases or easements?
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Which of the following is included in the exceptions related to mineral rights?
Which of the following is included in the exceptions related to mineral rights?
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Which of the following would be considered a current defect affecting the title?
Which of the following would be considered a current defect affecting the title?
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Who holds the rights to use the Commitment for Title Insurance Form?
Who holds the rights to use the Commitment for Title Insurance Form?
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Study Notes
Commitment for Title Insurance
- This document is an offer to issue one or more title insurance policies.
- Claims must be based solely in contract.
- This commitment is not an abstract of title, report of the condition of title, legal opinion, opinion of title, or other representation of the status of title.
- Procedures used to determine insurability of the title are proprietary to the Company, performed solely for the benefit of the Company, and create no extra contractual liability to any person, including a Proposed Insured.
Commitment to Issue Policy
- First American Title Insurance Company commits to issuing the Policy according to the terms and provisions of this Commitment.
- Commitment is effective upon entry of the specified dollar amount as the Proposed Policy Amount and the name of the Proposed Insured in Schedule A.
- Commitment terminates if all Schedule B, Part I-Requirements are not met within six months after the Commitment Date.
Commitment Conditions
- “Land” includes the land described in Schedule A and improvements that by law constitute real property, but does not include any property beyond the area described in Schedule A.
- “Mortgage” includes a mortgage, deed of trust, or other security instrument, including one evidenced by electronic means authorized by law.
- “Public Records” are records established under state statutes at the Commitment Date for imparting constructive notice of matters relating to real property to purchasers for value.
- The Company’s liability and obligation is limited by the Notice, Commitment to Issue Policy, Commitment Conditions, Schedule A, Schedule B, Part I—Requirements, and Schedule B, Part II—Exceptions.
- The Company’s liability under Commitment Condition 4 is limited to the Proposed Insured’s actual expense incurred in the interval between the Company’s delivery of the Commitment and the delivery of the amended Commitment.
- The Company’s liability shall not exceed the lesser of the Proposed Insured’s actual expense incurred in good faith or the Proposed Policy Amount.
- The Company will only have liability under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured.
- In no event shall the Company be obligated to issue the Policy unless all of the Schedule B, Part I—Requirements have been met to the satisfaction of the Company.
Schedule A
- Commitment Date: May 16, 2019 at 5:00 PM.
- Policies to be issued: 2006 ALTA® Owner's Policy.
- Proposed Insured: IrishBulldog, LLC.
- Proposed Policy Amount: $265,000.00
- Estate or interest in the Land: FEE.
- Title is vested in: Lewis & Lahti Limited Partnership.
Schedule B, Part I - Requirements
- Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land.
- Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.
Schedule B, Part II - Exceptions
- This Commitment does not republish any covenant, condition, restriction, or limitation contained in any document referred to in this Commitment to the extent that the specific covenant, condition, restriction, or limitation violates state or federal law based on race, color, religion, sex, sexual orientation, gender identity, handicap, familial status, or national origin.
- The Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A.
- Taxes for the year 2019 are not shown as existing liens in the records of the County Treasurer.
- The first installment of real estate taxes for the year 2018 in the amount of 484.98ispaid;thesecondinstallmentof484.98 is paid; the second installment of 484.98ispaid;thesecondinstallmentof484.97 was also paid.
- The terms and conditions of Resolution granted to the Historic Preservation Board for Historic Preservation are excepted.
Title Insurance Commitment
- A commitment for title insurance is prepared before issuing a Policy of Title Insurance that shows ownership of a specific parcel of land with liens and encumbrances.
- Commitment is a document that states the conditions under which a title company will issue a title insurance policy.
- Policy is an insurance contract that protects against losses due to title defects.
- Liens are financial claims against a property.
- Encumbrances are rights or interests that affect the ownership of a property.
- The Commitment for Title Insurance lists title defects, liens, and encumbrances that would be excluded from coverage in a subsequent title insurance policy.
- The commitment allows parties to a real estate transaction to review and discuss any objectionable items that may be excluded from coverage.
- The commitment can be used to seek the removal of objectionable items before purchase.
- The commitment is produced shortly after escrow is opened by the title company.
Recorded Matters
- Recorded matters relate to both the property and the parties involved in the transaction.
- Examples of recorded matters include:
- Mortgages recorded against the property.
- Parties to the transactions.
- Recorded matters are listed numerically as “exceptions” in the commitment.
- They remain exceptions from title insurance coverage unless eliminated or released prior to the transfer of title.
Key Points When Reading a Commitment
- You will be interested primarily in the extent of your ownership rights.
- This means:
- Reviewing the ownership interest in the property you will be buying.
- Reviewing any claims, restrictions, or interests of other people involved in the property.
- The commitment will note in a statement of vesting the degree, quantity, nature, and extent of the owner's interest in real property.
- The most common form of interest is "fee simple" or "fee," which is the highest type of interest an owner can have in land.
- Liens, restrictions, and interests of others that are being excluded from coverage will be listed numerically as “exceptions” in the commitment for title insurance.
- They may be claims by creditors who have liens or liens for payment of taxes or assessments.
- They may also be recorded restrictions which have been placed in a prior deed or contained in specific documents creating covenants, conditions, and restrictions (CC&Rs).
- Interests of third parties are not uncommon and may include easements given by a prior owner which limits your use of the property.
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Description
Explore the essentials of title insurance commitment documents, including the specifics of the offer and the terms for policy issuance. Understand the implications of contract claims and the proprietary nature of title insurability. This quiz will guide you through the commitment conditions and requirements for title insurance.
