A Promissory Note Safety Net and Security Blanket

When purchasing a home, or other real estate, the buyer needs to know who the present owners are, if they hold «good title», and if they can convey the property ownership (title) free and clear of all liens and encumbrances. Obtaining this information is typically done by ordering a title insurance policy from a title insurance company. A document is provided (title insurance commitment) showing all pertinent ownership information and all recorded liens and encumbrances.