Title Insurance is an essential piece of a real estate transaction; however, it can be somewhat complicated and potentially difficult to understand. Here, we’ll offer a brief overview of the Title Commitment, specify the roles and responsibilities as they relate
to you and us, and provide links to articles and videos that will help further your understanding.
Once you are under contract for the purchase or sale of a property, you will receive a Title Commitment, also called a Preliminary Report. Some of the things you will find within the Preliminary Report:
-
- Name of the Owner of Record (should be seller’s name)
- Legal description of the property
- Plat Map (most likely a link found within the Exceptions)
- Exceptions/Exclusions: With no outlier that we know of, every insurance policy (auto, home, life, etc.) has “exceptions”—or things/occurrences that aren’t covered. Title insurance is no different. The Title Commitment you have received will include the exceptions to the proposed Title insurance policy.
Roles and responsibilities:
Us
- Check the accuracy of basic facts found in the Title Commitment/Preliminary Report — such as names, legal description, parties in the distribution list, etc.
- Answer client questions when possible and when necessary/appropriate; refer questions to title professionals and attorneys.
You
- Review the Preliminary Report.
- Take some time to review the linked videos and articles found below.
- Make a note of and ask any questions you may have.
Colorado Real Estate Commission article & FAQ on Title Insurance
Why Title Insurance is Right for You