First, choose your title company. Your contract to purchase a property may designate a specific title company, or you may receive a recommendation from your attorney or real estate agent. You can shop ahead of time to learn more about commercial title products and the companies that provide them.
Once a contract is ratified, a copy should immediately be delivered to the chosen title company, which will initiate a title search to analyze the collection of public records that affect the property. This typically takes two weeks (or longer, depending on the complexity of the transaction).
The outcome of the title search is a commitment on behalf of the title company to issue a policy of title insurance to the buyer and lender subject to certain stated requirements and exceptions. The buyer should review the commitment and accompanying documents to make sure that the title it receives will be acceptable for its intended purposes, and address any issues in question. Once the buyer reviews the commitment documents carefully to make sure the title and conditions are satisfactory, the parties can then close the transaction. The title company will bind coverage as of the closing date, but will issue the title insurance policy approximately 30 to 45 days after closing.