NJ ALTA Commitment 1966 Guideline 3-01
A Commitment is issued to a proposed buyer or lender preliminary to the issuance of a policy of title insurance. The Commitment is an agreement by the insurer to issue its policy on the terms agreed to in the Commitment. However, a Commitment is not a title report or an abstract of title.
Schedule A of the Commitment identifies the type of policy or policies to be issued, describes the land to be insured; and designates the vested owner of the land.
The form of Schedule B may vary according to the custom of different areas. However, all forms of Schedule B contain the statement the policy will contain exceptions to defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the date of the commitment but prior to the proposed insured acquires title or a mortgage unless the matters are disposed of to the satisfaction of the insurer.
In some areas Schedule B merely sets forth those defects, liens and encumbrances which the insured has determined to affect title and which the insurer is unwilling to insure against. It is then the obligation of the proposed insured to obtain a satisfactory release or eliminate those matters which the proposed insured does not wish to appear as an exception to coverage in the policy.
In other areas Schedule B is divided into two parts. Part 1 sets forth a list of the instruments in insurable form which must be executed, delivered, and duly filed for record before a policy may be issued. Part 11 lists those defects, liens and encumbrances which the insurer has determined to affect title and which the insurer is unwilling to insure against. It is then the obligation of the proposed insured to obtain a satisfactory release or otherwise eliminate those matters which the proposed insured does not wish to appear as an exception to coverage in the policy.
The obligations of the insurer are defined and limited by Conditions and Stipulations which are part of the Commitment form.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):None