A Simple Guide to Your Title Commitment
What You Need to Know About Your Title Commitment
When you're buying a home, there's a lot of paperwork to navigate — and one document that plays a key role in the process is the title commitment. But what exactly is it, and why does it matter?
A title commitment outlines the terms and conditions of the title insurance policy you'll receive after closing. It includes essential details about the property to be insured, lists the steps that must be completed before the policy takes effect, and notes any exceptions — things the policy won’t cover.
Think of it as a preview of your final title insurance policy and a guide to help ensure a smooth transaction. In this post, we’ll break down what’s inside a title commitment, why it matters, and how to read it with confidence.
Let’s Dive Deeper! What is a title commitment?
Before your title insurance policy can be issued, you'll receive a document called a title commitment. Think of it as a preview of what your title insurance will cover, along with a checklist of what needs to be done before closing.
The title commitment is usually broken into a few sections: Schedule A, Schedule B (Parts I and II), and a Conditions section. Below we’ve outlined key details about the property, what the title insurance will and won’t cover, and any steps that need to be taken before the policy can be finalized.
Understanding the Title Commitment Section. Here’s a quick look at what each part of the title commitment includes:
Schedule A – The Basics
Think of this as the “who, what, and where” of your title policy.
Names of the buyer and seller
Legal description of the property
Type of title insurance being issued
Policy amounts and proposed insured parties
Schedule B, Part I – Requirements
This is your to-do list before closing — what needs to happen to clear the title.
Items that must be addressed before the title insurance can be issued
Examples: Payoff of existing loans, releasing old liens, recording the deed
Schedule B, Part II – Exceptions
Exceptions are items that the title insurance will not cover. It’s important to read them closely.
Things the title insurance will not cover
Examples: Utility easements, lawsuits regarding HOA rules, certain zoning restrictions
Conditions Section
The fine print that applies to all title policies — not specific to your property.
Definitions of key terms
General conditions, insurer’s liability, and legal provisions
What to do once you receive your title commitment
Once you receive your title commitment, you're one step closer to closing on your new home. But don’t just file it away — this document plays an important role in the final stages of your transaction, so review it carefully. Go through each section (especially the exceptions and requirements) to make sure there are no surprises. You’ll want to understand:
What needs to be resolved before closing
Any limitations on your coverage
If the seller truly has clear ownership
If you have an HOA, read the rules carefully
If anything is unclear or concerning, ask your title company to explain it.
Final Tip:
The title commitment is your chance to catch and fix any title-related issues before you officially become the owner. Taking the time to understand it now can help you avoid legal or financial surprises later.
Still have questions? Don’t hesitate to reach out to your title professional — they’re there to help guide you every step of the way.
