WHAT IS A TITLE COMMITMENT?

In brief, a title commitment is a document evidencing the commitment by the title company to insure the title to a property and issue a title policy if certain conditions are met.

This is general information and may not apply to all transactions.

Schedule A: “Actual Information” This is the Who, What, Where and How Much of the transaction. Schedule A lists the names of the seller, buyer and lender, a legal description of the property, and the sales price and loan amount.

Schedule B: “Buyer Disclosure” This is a list of the documents reserving some interest or control of the property in a third party. For example, a utility easement allowing the utility provider to access or use a portion of the property, or a building setback line which prohibits the property owner from erecting any improvements within a certain distance from the property line. Any loss suffered as a result of the items listed under Schedule B will not be covered by the final title policy.

Schedule C: “Closing Conditions” The items listed here must be resolved in order to transfer title to the new owner and issue title insurance. For example, a mortgage or lien to be paid off, marital status of the parties to the transaction, incorrect or incomplete deeds in the prior chain of title, or a requirement that we obtain and review probate, divorce or bankruptcy filings.

Schedule D: “Disclosure” This last section discloses all parties who will collect any part of the insurance premium including underwriters, title agents and attorneys.