Title Commitment vs Title Insurance Policy-The Differences Explained

Title Commitment vs Title Insurance Policy

I had a client closing last month where the buyer (last-minute) needed a real estate attorney to draft up a document/agreement. The buyer went to the attorney who also said: “Do you want me to look at your Title Insurance Policy?” The buyer said sure. The attorney then started saying things like…”hmm, that isn’t good” and ” oh wow” while taking a pen and striking out items. Keep in mind this was a $1.4M dollar home. The buyer got upset and told the Realtor that the Title Company was ripping him off and not providing proper title insurance coverage. This was all taking place at another place than the closing. After closing, my client was not happy. I had to explain to the client in detail a Title Commitment vs Title Insurance Policy. They are not the same. The attorney was striking out items in the Title Commitment (Schedule B)…not the policy that is sent to the buyer AFTER closing. Once I explained everything the client was fine. She said…“you should write a blog about that on your site, as it could help educate a lot of Realtors!”  I agreed with her…so here you go: