The second option is to get a title commitment. A title commitment is typically only ordered after a contract has been escrowed through a title company. A title commitment will state what the terms of the title policy would be, title defects the title company has found, and what requirements would need to be completed to issue a title policy. A title policy will insure title from title defects that may have been in place prior to a buyer purchasing the property.
Unfortunately, a title commitment is not typically conducted until you have a property under contract and it can typically take up to 2 weeks to be provided. This can prevent you from acting fast on a real estate investment. In real estate, time is of the essence, and a matter of hours could mean losing a deal.
Deciding which tool to use will depend on the type of transaction you are utilizing. Regardless of which option you choose, it is imperative that you conduct title work to ensure efficiency in evaluating properties, prevent liability, and maintain your reputation as a real estate professional. Who wants to spend countless hours on a transaction to later find out there are title defects that could have been discovered earlier in the process?