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

An affidavit of title is a sworn statement made by an individual who is knowledgeable about the title of a property and who is familiar with the parties to a transaction. The affidavit states that the title is in the name of the rightful owner of the property and that there are no liens, encumbrances, or other claims against the title. It is used to protect a buyer from legal title defects in the event that the seller does not properly transfer the title. A title commitment is a document which is issued by a title company prior to the closing of a real estate transaction. It provides a statement of ownership of the property as well as a list of requirements that must be satisfied so that the title company can issue a title policy. The title commitment also outlines the liabilities of the title company should any legal issues arise after closing. It serves as proof of title insurance coverage and alerts the buyer of any issues that must be resolved before the closing can occur. In summary, the main difference between an affidavit of title and a title commitment is that an affidavit of title is a sworn statement made by an individual regarding the title of a property, while a title commitment is a document issued by a title company which provides a statement of ownership and lists the requirements that must be satisfied to obtain title insurance.

Related FAQs

What is a deed of trust with a power of sale?
What is a title insurance policy?
What documents should I review before buying a home?
What is a principal residence exemption?
What is a homeowners association?
What is the difference between a real estate attorney and a real estate agent?
How do I qualify for a mortgage loan?
What is an FHA loan?
What is the difference between a Listing Agreement and a Buyer Representation Agreement?
What are closing costs?

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

Related FAQs

Related Blog Posts