Understanding the Title Commitment

The Title Commitment is divided into several sections: Schedule A and Schedule B. 

Schedule A: contains basic information on the property, including:

1.  Commitment Date

2.  Policies to Be Issued, Amount, and Proposed Insured

3.  Interest in the Land and Owner

4.  Description of the Properties being insured
 Schedule B: lists what things must be done before escrow can close and title insurance will be issued.  If a requirement can not be met, close of escrow may be prevented or delayed.  Talk to the escrow officer about fulfilling any unusual requirements as soon as possible to avoid a delay in close of escrow.

Examples of Requirements:

  1. Payment of taxes
  2. Recording a release
  3. Reconveyance of the deed currently encumbering the property
  4. Recording the new deed
  5. Recording the documents securing the new loan.
  6. Other requirements may include approval by the trustee in bankruptcy
  7. Recording a disclaimer deed from a spouse
  8. Recording a court order evidencing the authority for one person to act on another’s behalf
  9. Copy of a trust, Corporation, or LLC paperwork
  10. Releases of various other types of liens.
  11. Proof of Identity

The Exceptions section discloses the exceptions that the title company will not cover against.  The title insurance policy will not insure against loss, nor will the title insurer pay costs, attorney fees, or expenses, resulting from title problems listed in Schedule B.  Talk to our escrow officers if there are questions or concerns regarding the exceptions on the Title Commitment for disclosure items and for restrictions on the use of the property.

Examples of Exceptions:

  1. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or by making inquiry of the persons in possessions of the land.
  2. Any encroachments, easements, measurements, variations in area or content, party walls or other facts which a correct survey of the premises would show.
  3. Road ways, streams or easements, if any, not shown by the public records, riparian rights and the title to any filled in lands.
  4. Unpatented mining claims, water rights, and claims or title to water.
  5. Possible additional tax assessment by reason of new construction or improvements pursuant to the provisions of the Acts of Assembly relating thereto, not yet due and payable.
  6. Further exceptions will be noted on the title commitment.