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ABC's of the Title Commitment

The Commitment for Title Insurance is the preliminary document issued by the Title Company that contains the conditions and requirements under which a title policy may be insured. It is a state promulgated form and may only be revised as indicated in the rules and regulations promulgated by the State. The four “Schedules” or sections of the Commitment are shown below:

Schedule A outlines the facts including:

  • Effective date of commitment
  • Name(s) of proposed insured(s) (Owner & Lender)
  • Proposed amount of title insurance coverage
  • Current record owner of the property
  • Legal description of the property to be insured

Tip: 

Read Schedule A and confirm that all information is accurate including spelling and name abbreviations. The names should reflect the buyer’s legal name.

Schedule B- Buyer Notification & Exceptions

Schedule B outlines details that are specific to the property to be insured as well as exceptions to coverage that are not insured, including:

  • Restrictions
  • Taxes
  • Easements
  • Mineral Reservations/Leases
  • Area and Survey Discrepancies
  • Rights of others

Tip: 

Review Schedule B carefully as the items in this section can affect property use and access. Title objections must be submitted in writing according to the provisions of the contract. 

Schedule C- Clear to Close 

Schedule C of the Title Commitment identifies any items that must be resolved prior to closing such as:

  • Liens
  • Bankruptcies
  • Marital Status Issues
  • Probate Issues
  • Entity/Trust Issues 

Tip: 

Read Schedule C and provide your Closer with information or assistance in resolving the items prior to closing. A title company is not permitted to provide legal counsel regarding the Title Commitment. If you have any legal questions, please refer to an attorney of your choice. 

Schedule D- Disclosure 

Schedule D is simply a disclosure of information about owners, directors, officers and underwriters required by Texas state rules and regulations. Additionally, it outlines title policy amounts. 

Tip: 

Reading and understanding the Title Commitment is paramount to the success of your closing. 

This information is provided as a courtesy and does not cover the Title Commitment in its entirety. Please contact legal counsel for any legal advice.