Preliminary Title Commitments & Title Commitments Explained

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At Real Estate Two70, one of the most important — and most overlooked — documents in a real estate transaction is the preliminary title commitment. While buyers and sellers often focus on inspections and financing, title documents quietly define what ownership rights will actually transfer at closing.

This page explains what preliminary title commitments and title commitments are, who provides them, who relies on them, and how they fit into an Idaho real estate transaction from contract to closing.

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What Is a Preliminary Title Commitment?

A preliminary title commitment (often called a “prelim”) is a document issued by a title company that outlines the current condition of a property’s title before closing.

It is not a guarantee of clear title. Instead, it is a snapshot of what the title company has found in public records and what conditions must be satisfied before title insurance can be issued.

In Idaho transactions, the preliminary title commitment is typically delivered early in escrow so buyers, sellers, and lenders can review title-related issues before closing.

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What a Preliminary Title Commitment Is Not

Preliminary title commitments are commonly misunderstood.

• They are not title insurance
• They do not guarantee ownership is free of issues
• They do not remove liens or encumbrances on their own
• They are not the final word on title until closing conditions are met

Instead, they identify what must be addressed so that title insurance can later be issued.

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What Is a Title Commitment?

A title commitment is closely related to a preliminary title commitment. In many transactions, the terms are used interchangeably.

More precisely, a title commitment is the title company’s formal commitment to issue a title insurance policy after specific conditions are satisfied.

The preliminary title commitment is the version buyers and sellers review before closing. Once conditions are met, the title commitment is fulfilled through the issuance of a title insurance policy.

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Who Provides Preliminary Title Commitments?

Preliminary title commitments are issued by licensed title companies, including:

• Local Idaho title and escrow companies
• National title insurance companies operating in Idaho

The title company researches public records, including deeds, mortgages, tax records, and court filings, to prepare the commitment.

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Who Uses Preliminary Title Commitments?

Several parties rely on the preliminary title commitment:

• Buyers — to understand ownership rights and restrictions
• Sellers — to identify liens or issues that must be cleared
• Lenders — to confirm collateral and lending requirements
• Real estate agents — to coordinate solutions and timelines
• Title companies — to track required conditions for closing

Because title issues can affect financing, use of the property, or future resale, this document plays a critical role behind the scenes.

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What a Preliminary Title Commitment Usually Includes

While formats vary, most preliminary title commitments contain three main sections:

Schedule A – Basic Information

• Property legal description
• Proposed insured parties
• Policy amount
• Effective date of the title search

Schedule B-I – Requirements

These are the items that must be satisfied before closing, such as:

• Payoff of existing loans
• Release of liens or judgments
• Recording of corrective documents

Schedule B-II – Exceptions

These are items that will remain on title after closing and will not be covered by title insurance, such as:

• Easements
• Rights-of-way
• CC&Rs or HOA restrictions
• Mineral rights reservations

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How Preliminary Title Commitments Fit Into the Transaction Timeline

In a typical Idaho transaction:

1. A purchase agreement is signed
2. Escrow is opened with a title company
3. The preliminary title commitment is issued
4. Parties review and address title requirements
5. Conditions are satisfied prior to closing
6. Title insurance policies are issued at closing

If title issues are discovered late, they can delay or even prevent closing.

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Common Issues Found in Preliminary Title Commitments

• Unreleased prior mortgages
• Property tax liens
• Judgments against the seller
• Boundary or access easements
• HOA restrictions or assessments

Most issues are resolvable, but they often require time, documentation, and coordination.

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How Real Estate Two70 Approaches Title Commitments

At Real Estate Two70, we view preliminary title commitments as a planning document, not just a closing form.

We help clients:

• Understand which title items are routine versus concerning
• Identify issues early rather than at the closing table
• Coordinate with title and escrow professionals
• Avoid surprises that delay closing

We encourage buyers and sellers to review title documents carefully and ask questions early.

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Related Buyer & Seller Resources from Real Estate Two70

• Buyer Representation Explained in Idaho (RE-14)
• Idaho Agency Disclosure Brochure
• Pre-Approval Letters Explained
• Pre-Qualification Letters Explained
• Meet Our Idaho Real Estate Agents