What type of issues does a title commitment report disclose?

A title commitment report is crucial in the process of property transactions, as it provides a detailed overview of the property's title status. The correct answer highlights that these reports disclose potential issues and encumbrances related to the property. This includes any liens, judgments, or other claims that might affect the ownership or use of the property.

By revealing these potential issues, the title commitment report protects both buyers and lenders by ensuring they are aware of any legal complexities that could impact the title or ownership rights. Understanding these disclosures is vital for making informed decisions about property transactions.

Different options present misinterpretations of the report's purpose. For example, stating that it only includes positive encumbrances overlooks the report's primary function of identifying problematic encumbrances. The option suggesting that the reports do not disclose any issues is inaccurate, as the core purpose of a title commitment is to identify potential risks. Lastly, asserting that it reports on structural issues is misleading, as title commitment reports focus on legal aspects of ownership rather than physical inspections of the property.