The title commitment is a promise to insure and issue a final title policy on a subject property. The commitment lists the basic facts of the transaction, necessary requirements and exceptions to title. All requirements must be satisfied before the title company can insure that title is free from reasonable doubt or defect. By preparing the commitment the title company is informing all parties to the transaction of all known burdens affecting the property and committing to insure when all requirements have been meet.
Ownership & Encumbrance reports commonly referred to as an O&E are a snapshot of current ownership and encumbrances posted against the property. Encumbrances are shown as unreleased, as well as judgments, bankruptcies and other liens against names of parties in title.
There are many reasons why a owner would choose to hold their property in a trust. Some of the common purposes might include; privacy, estate planning, corporate structure, tax planning, asset protection, or many other reasons.
When a trust is planning on holding title to a property in Colorado there are two ways.
Hold Opens are used most often when an investor is buying a fixer-upper and planning on reselling their real estate investment for a profit within a 2 year time frame.
The buyer pays an additional premium at closing (usually 10% of basic rate)
Title Company keeps the file open after closing and no title insurance is issued at this time
When the buyer becomes the seller they only pays for the difference in premiums between the purchase price and the selling price
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