ALTA Commitment Changes

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.

Most of these changes will not affect clients. Rather, they provide a clearer picture of the transaction at hand for agents like Title Source and our underwriter partners.

Noteworthy modifications

  • Including “TBD” on the Proposed Insured is an outdated practice.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.

(800) 594-1044 | titlesource.com/commercial

 

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