A title insurance commitment is a binding agreement to issue a title insurance policy. For this reason it is often referred to as a title insurance "binder".
In the normal course of business, the commitment is issued to the lender and/or the prospective purchaser, prior to the real estate closing. Its purpose is to assure the lender and the new owner that once the transaction has closed, and the requirements of the commitment have been satisfied, they will be able to obtain a title insurance policy.
Physically, the commitment consists of the Cover, Schedule A and Schedule B, parts I and II. The pre-printed cover, pictured below, contains the terms and conditions of the commitment. In order for the commitment to be valid, an authorized signature must appear in the lower left corner.