What does a title commitment state?

A title commitment is a crucial document in the real estate closing process as it outlines the conditions that must be fulfilled in order for a title insurance policy to be issued. It is essentially a promise from the title insurance company indicating that, upon meeting specified conditions, it will provide a title insurance policy to the property buyer or mortgage lender. This document typically details the title examination process, any defects or issues that have been identified, and requirements such as clearing liens or fulfilling title requirements before the issuance of the final policy.

Other options pertain to information that is not typically found in a title commitment. The market value of the property, for example, is determined by a separate appraisal process and is not addressed in the title commitment. Property tax assessments give an indication of the local government's valuation for tax purposes but are not relevant to the commitments regarding title insurance. Similarly, while warranty against defect claims can be a part of the title insurance policy, the title commitment itself focuses more on who holds the title and any potential issues affecting that title, rather than providing a warranty. Therefore, the correct answer encapsulates the primary function of a title commitment as a preparatory document for obtaining title insurance.