What is the difference between an affidavit of title and a title commitment?

An affidavit of title is a legal document created by a seller of a residential real estate property. It is used to prove to a potential buyer that the seller has the full legal right to transfer ownership of the property and that there no existing claims or liens against the property. The affidavit of title outlines the seller’s name and the legal description of the property, and is signed in front of a notary public. A title commitment is a document that is provided by a title insurance company. It outlines the items that must be completed before a title insurance policy can be issued. The title commitment includes information such as the name of the buyer and seller, legal description of the property, and any existing liens or other claims against the property. The title commitment also includes any requirements that must be met in order to clear title to the property. In South Dakota, a title commitment must be issued within 60 days of the purchase agreement. In short, an affidavit of title is used to prove the seller has the legal right to transfer ownership whereas a title commitment is used to ensure that all the necessary items are completed before a title insurance policy can be issued.

Related FAQs

What is the difference between a fixed-rate and an adjustable-rate mortgage?
What is a Release of Lien?
What is a mortgage pre-approval?
What is an FHA loan?
What is a lease purchase agreement?
What is a home equity loan?
What is an Option Clause in a real estate contract?
What is a lease option?
What is a deed in lieu of foreclosure?
What is a servitude?

What is the difference between an affidavit of title and a title commitment?

Related FAQs

Related Blog Posts