Guides

Title commitment explained

How to read the document that comes before your title insurance policy.

After the title search, the title insurer issues a title commitment. It’s the insurer’s offer to issue a policy, based on what the search found. It lists the requirements that must be met before closing and the exceptions the policy won’t cover.

  • Schedule A

    The basics: who, what, and how much

  • Schedule B-I

    Requirements to meet before closing

  • Schedule B-II

    Exceptions the policy won’t cover

The three parts

Click through a sample commitment to see what each schedule holds.

Inside a title commitment (sample)

  • Commitment dateThe date the search is current through.
  • Policies to be issuedOwner’s policy, lender’s policy, or both, with the amount of each.
  • Proposed insuredWho the policy will protect: the buyer, the lender, or both.
  • Title vested inWho owns the property now, according to the records. It should match your seller.
  • Legal descriptionExactly which land is covered. It’s more precise than a street address.

Sample entries for illustration. Your commitment lists what applies to your property.

Schedule A: the basics

Schedule A names the proposed insured, the policy amounts, who holds title now, and the legal description of the land. Check that the names and the property match your contract.

Schedule B-I: requirements

These are the things that must happen before the policy can be issued. Most are routine, like paying off the seller’s mortgage and recording the new deed. Clearing them is the curative work that happens before closing.

Schedule B-II: exceptions

Exceptions are items the policy won’t cover. Some are standard, and others come from the search, like a recorded easement. Read this part closely. If an exception concerns you, ask about it before closing.

What to check before closing

  1. Names and property

    Make sure the seller in “title vested in” matches your contract, and the legal description matches the property.

  2. Policy amounts

    The owner’s policy usually matches the price; the lender’s policy, the loan amount.

  3. Exceptions

    Read Schedule B-II. Ask about anything you don’t understand.

  4. Questions

    Call the title company, or talk to your attorney about what an exception means for you.

Next step

Questions about a commitment you’ve received? Contact us.

This is general information, not legal advice. Talk to your attorney.

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