The Commitment should ALWAYS be reviewed in its entirety. A quick scan could cause you to miss important information that could delay the close of escrow.
In most cases, when liens or clouds on title are discovered early in the process the Title Officer can work with the parties to the transaction to resolve these
matters and prevent escrow delays. The key is for all parties in the transaction to review ALL exceptions and informational notes and communicate with their
Escrow Officer and Title Officer. The role of the Escrow Officer is to obtain and follow instructions from all parties involved in the transaction.
The following is a list of highlights that you should be reviewing on every Commitment:
* Do the names on the property match the Names on the
Contract?
* Have you reviewed the legal description to see the
description of the land covered in the Commitment?
EXCEPTIONS PAGE
The Commitment will show the payment status of property taxes and supplemental taxes.
Does the seller confirm that this is correct or have additional payments been recently made?
* Review the Commitment for any easements. Copies of
recorded easements are hyperlinked when available or
recorded copies can be ordered through your Escrow
Officer.
* Are there recorded CC&R’s on the property?
Have your clients reviewed the CC&R’s?
*Are there any Deeds of Trust listed on the Commitment?
If a Deed of Trust appears this could mean that the Deed of
Trust has not been reconveyed. If the loan secured by this
Deed of Trust has been paid in full contact your Escrow
Officer immediately.
* Are we missing any Deeds of Trust?
If the seller is aware of an active loan secured by a Deed of
Trust that is not on the Commitment contact your escrow Officer immediately.
* Are there any other liens and encumbrances?
IRS, mechanics liens, family support judgments, etc. all
take time to clear through escrow and your Escrow Officer
will likely need the cooperation of the homeowner. If not
addressed immediately these items could delay the close
of escrow.
INFORMATIONAL NOTES
* The property type is listed to aid title in issuing the
appropriate policy of title insurance and endorsements. A
lender will typically want to verify the property type (SFR,
1-4 Family, Condo, etc.)
* Is there a requirement for a Statement of Identity? A
Statement of Identity is required when the title department
cannot clear the seller of any liens based on their name. It
is important that this information be returned to the Escrow
Officer immediately to avoid any escrow delays.
ASSESSOR’S PARCEL MAP (provided for informational use only.
This is neither a plat nor a survey, it is furnished merely as a convenience to aid you in
locating the land indicated with reference to streets and other land.)
* Does this match your understanding of the property under
contract? Dotted lines could indicate easements, although
not all easements are shown on the Assessor’s
Parcel Map.
A commitment is not a policy of title insurance. The issuing company assumes no liability for any reliance thereon.
It is important to note that a Commitment is not a written representation as to the condition of title and may not list all liens,
defects and encumbrances affecting title to the land.
Please let me know if you have any questions on the information above. I always enjoy hearing from you.