TITLE EXAMINATION VS. TITLE COMMITMENT
In real estate transactions, the terms title examination and title commitment are often mentioned together, but they represent two different steps in the closing process. Understanding how these two concepts relate can help attorneys, lenders, and settlement professionals ensure that property ownership issues are properly identified and resolved before closing.
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Both are essential parts of verifying property ownership and protecting the parties involved in a transaction.
What is a Title Examination
A title examination is the process of reviewing public records to determine the legal history and current status of a property’s ownership.
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​​During a title examination, an examiner researches
records maintained by the county, including:
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Recorded deeds and ownership transfers
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Mortgages and security deeds
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Liens and judgments
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Easements and rights of way
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Tax records and unpaid taxes
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Restrictions or covenants affecting the property​
The purpose of the title examination is to confirm that the seller has the legal right to transfer the property and to identify any issues that may affect the title. The results of this research are typically compiled into a title report or title abstract that is provided to the closing attorney or settlement professional.
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Title examinations are commonly performed for purchase transactions, refinancing, title insurance underwriting, and legal review of property ownership.
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Learn more about our Georgia Title Examination Services to see how this research supports real estate closings.
What Is a Title Commitment?
A title commitment is a document issued by a title insurance company that outlines the terms under which the insurer is willing to issue a title insurance policy for a property.
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The title commitment is typically prepared after the title examination has been completed. It summarizes the findings of the examination and identifies any requirements that must be satisfied before title insurance can be issued.
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A title commitment generally includes:
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The proposed insured parties
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The amount of coverage
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The legal description of the property
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Requirements that must be met before closing (such as payoff of liens)
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Exceptions to coverage, including easements or restrictions that will remain on the property
This document helps attorneys and lenders understand what issues must be addressed before a transaction can close and a title insurance policy can be issued.
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For a deeper look at the information reviewed during this process, see What Does a Title Exam Include in Georgia?
Key Differences Between a Title Examination and a Title Commitment
While closely related, these two elements serve different purposes in a real estate transaction.
Title Examination
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Research and analysis of public records
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Conducted by a title examiner or abstractor
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Identifies ownership history and potential title issues
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Produces a title report or abstract
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Title Commitment
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Document issued by a title insurance company
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Based on the results of the title examination
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Outlines requirements and exceptions for title insurance
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Prepares the transaction for issuance of a title policy
In short, the title examination is the research process, while the title commitment is the insurance company’s statement of coverage conditions based on that research.
Why Both Are Important in Real Estate Closings
Together, title examinations and title commitments help protect buyers, lenders, and attorneys from unexpected ownership issues.
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The title examination identifies potential problems in the public record, while the title commitment outlines the steps necessary to resolve those issues before closing. By addressing these matters in advance, real estate professionals can help ensure that property transfers occur with clear and marketable title.
For additional guidance on title searches, title reports, and the closing process, visit our Georgia Title & Closing Resource Center.