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- Actual Facts
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
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 the specific details of the property to be insured as well as exceptions to coverage that are not insured, including:
- Mineral Reservations/Leases
- Area and Survey Discrepancies
- Rights of others
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:
- Marital Status Issues
- Probate Issues
- Entity/Trust Issues
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 Rattikin & Rattikin or 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.
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. Revised 9/17.