What is the updated 2016 ALTA Commitment form? 

The 2016 ALTA Commitment is a more streamlined version of the 2006 ALTA Commitment.  It contains clarifications of the obligations between the title insurer, proposed insured and title insurance issuing agent.

 

 When will the use of the 2016 ALTA Commitment be required?

The decertification date for existing commitments is August 1, 2018. However, the form was adopted in June 2016 and may be used prior to the August 1, 2018 decertification date.

 

Where can I find the standard updated ALTA 2016 Commitment form?

The standard ALTA 2016 Commitment is available in all versions of SoftPro and is located in the ReadyDocs tree.

If you do not see the updated commitment in your ReadyDocs tree, you will need to update to the most current version of software. For questions on upgrading your software, please call SoftPro Support at 800-848-0143, Option 3.

 

What about Underwriter specific Commitments?

If you are a SoftPro Standard or Enterprise user:

Underwriter Commitments can be found and downloaded here.

If you are a SoftPro Select user:

Please call SoftPro Support at 800-848-0143, Option 3 for assistance with these documents.

 

 What changed?

  • Notice at the top of the Commitment, it reiterates that the Commitment is an offer to issue a title insurance policy or policies, is not an abstract or opinion of title, and limits the Company’s potential liability to the proposed insured.
  • Clarifies a company’s right to amend the Commitment at any time and the limitations on the company’s liability relating to an amendment (Commitment Conditions 4 and 5).
  • Improves readability by adding and revising headings and reordering certain Commitment Conditions.
  • Definitions are consistent with the ALTA Owner’s Policy 2006 and the ALTA Loan Policy 2006 (Commitment Conditions 1).
  • Clarifies that the deletion or modification of any Schedule B, Part II – Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of the Commitment or the Policy.
  • New section added stating that an issuing agent is the company’s agent only for the limited purpose of issuing title insurance commitments and policies.
  • States that the issuing agent is not the Company’s agent for the purpose of providing closing or settlement services (Commitment Conditions 7).
  • New section added reiterating that if a proforma policy is provided to a proposed insured, it does not reflect the current status of title and does not constitute a commitment to insure (Commitment Conditions 8).
  • Optional section preceding Schedule A to insert Transaction Identification Data (Issuing Agent, Issuing Office, ALTA Universal ID, Loan ID Number, Commitment Number, Issuing Office File Number, Property Address, Revision Number), all for reference only. Liability for this data is also limited by Commitment Condition 5(e).
  • Notice to Schedule B, Part II - Exceptions stating that the Commitment does not republish any covenant, condition, restriction, or limitation contained in any document to the extent that the covenant, condition, restriction, or limitation violates state or federal law based on race, color, religion, sex, sexual orientation, gender identity, handicap, familial status, or national origin.
  • Introductory clause to Schedule B, Part II - Exceptions stating that the Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A.