§14.11 - The ALTA Commitment

• Jurisdiction: Washington

§14.11 THE ALTA COMMITMENT

The ALTA Commitment (current version adopted June 17, 2006) (see Form 14-1 on the CD accompanying this deskbook) is most commonly used in Washington. It replaced an almost identical version first adopted in 1966. The commitment is used in connection with conveyances and mortgages, including purchases by the United States government or one of its agencies and the U.S. Postal Service. A commitment is not intended for use in the commencement of a legal action or foreclosure. A guarantee should be used instead. See §14.30(2).

The essential elements of any commitment include (1) the type of policy or policies to be issued, (2) the amount of the proposed policy(ies), (3) the nature of the title of the described land (e.g., a fee or leasehold estate), (4) the current owner (vestee) of that title, (5) the description of the land, (6) the matters that the title insurer would not be willing to eliminate as exceptions from coverage if the policy(ies) were then being written, and (7) requirements, if any, of the title insurer, all as of a specific date.

It is composed of the insuring provisions, conditions, and Schedules A and B. Schedule B is divided into Section I (requirements) and Section II (exceptions), although sometimes a Note Section or a Schedule C will be used to show requirements. It is effective for a stated period of time, usually four to six months, and can be extended as necessary by formal endorsement (see Form 14-2 on the CD accompanying this deskbook) or reissue.

Practice Tip: The conditions require that the proposed insured and amount of the policy to issue be stated in Schedule A to be effective. If this information is not in the original commitment, it should be done by formal endorsement (see Form 14-3 on the CD accompanying this deskbook) or reissue.

(1) Conditions

The Conditions of the commitment require disclosure to the insurer of defects or liens known to the proposed insured but not shown therein. The insurer then has the option of amending the commitment accordingly. Liability is only to the proposed insured and others included in the definition of insured in the proposed policy. The company will be liable for actual loss occasioned by the insured in relying upon the commitment to eliminate exceptions, to comply with the stated requirements, or to acquire or create the estate described therein.

(2) Schedule A

Paragraph 1 shows the date the commitment is effective...