Once your property is under contract, you’ll receive (via email) the Title Commitment from the title company. This document outlines the legal status of your property and highlights any conditions that need to be addressed before the sale can close. Here’s some of what it typically includes:
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- Name of the Owner of Record: Confirms that your name is listed as the legal owner.
- Legal Description of the Property: A legal description is a precise set of instructions for identifying and locating a specific piece of land – similar to GPS coordinates. It defines the exact boundaries of a property down to the inch. While addresses can sometimes be confusing or imprecise, legal descriptions avoid mistakes by being tied directly to the property’s physical boundaries.
- (Schedule C) Requirements: This section lists things that need to be resolved before the title insurance policy can be issued (this is important because the buyer won’t be able to close without a title insurance policy). Examples include:
- Paying off outstanding liens and mortgages
- Resolving tax issues or judgments
Our Role:
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- Verify the accuracy of basic facts (e.g., names, legal description, parties on the distribution list).
- Review the Requirement for any unexpected liens, mortgages, judgments, etc.
- Assist with addressing and resolving any items that need attention before closing.
- Answer your questions and connect you with title professionals or attorneys for more complex matters.
Your Role:
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- Review the Title Commitment.
- Look at the Requirements section and note anything that looks out of place or incorrect.
- Work with us to address any items you or we flagged in the report (such as liens or mortgage payoffs).
- Let us know if you have questions or concerns—we’re here to guide you through the process.
Moving Forward
By understanding the Title Commitment and working together to resolve any issues, we’ll ensure a smooth path to closing. If you’d like to explore this topic further, I’ve included helpful articles and videos below:
Colorado Real Estate Commission article & FAQ on Title Insurance