Recently, the American Land Title Association (ALTA) made some alterations to the Title Commitment clients receive. New provisions to the ALTA Commitment Jacket remind us that the Commitment is neither a policy, nor any assurance of title, but a work product. Simply put, the Commitment is an offer to provide clients with insurance if all conditions are satisfied.
- Including “TBD” on the Proposed Insured is an outdated practice.
- Some state-specific provisions have been added or removed.
- Including “TBD” on the liability amount is no longer exercised. ALTA suggests listing dollar amounts on Schedule A, even if it is only $1,000 or something other than TBD.
- Schedule B requires an expiration date; Title Source is listing 180 days. If the provisions are not satisfied in that time, then the Commitment terminates.
- A signature from the title company is now required to validate the Commitment.
- Just like a Final Policy, a jacket is now required to be included with all Commitments.
Still have questions?
Reach out to our team. We would be happy to discuss these ALTA Commitment changes with you.
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