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Transaction Terms

Title Commitment

The title company's preliminary report showing what it will insure — exceptions, liens, easements, and encumbrances.

Full Definition

A title commitment is issued by the title company early in due diligence. It discloses the state of title: recorded easements, restrictions, liens, encumbrances, and exceptions to coverage. Buyer's attorney reviews every Schedule B exception to identify potential issues before closing.

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