Reading a Title Commitment
Reading a Title Commitment
The Title Commitment is our assurance to you that we will issue a title insurance policy upon payment of the premiums/fees and compliance with items in Schedule C.
The Title Commitment consisted of four schedules:
- Schedule A is an outline of who the policies will be issued to, policy amount, proposed insured and proposed borrower, who the current owners are, and the legal description of the property for sale.
- Schedule B outlines all the exceptions from coverage.
- Schedule C is a list of items to be resolved prior to or at closing or items that will be added to Schedule B of the policy as exceptions from coverage.
- Schedule D discloses who the insurance underwriter and agent will be for the policy and outlines the premium costs associated with the policy.
What is a Title Commitment
This is the “Who, What, and Where” of the title commitment
- Identifies the proposed insured (buyer and/or lender)
- States the type of policy (owner’s or loan)
- Provides the legal description of the property
- Lists the effective date of the title search
Think of this as the “fine print” of what the policy excludes.
Lists matters that will not be covered by the title insurance policy.
Common Examples:
- Easements
- Restrictive covenants
- HOA restrictions
- Rights-of-way
- Mineral rights
This is your “to-do list” to get to closing
Lists the items that must be cleared before the policy can be issued
Common Examples:
- Release of prior mortgages
- Release of judgments
- Suits
- Proving authority to sign
- Verification of assessment payment
This is the disclosure section
Discloses ownership of the issuing company and the title agent and outlines any and all parties who will collect any portion of the title insurance premium.
