The Title Commitment
The title commitment is produced after the title company has received a copy of a signed sales contract and a check for earnest money. The commitment reviews the status of title, lists title issues and defects that need to be addressed or “cured” before closing, and states any other preconditions to issuance of a title policy.
This is not the same thing as title insurance. Click here to learn about Title Insurance.
The title commitment consists of Schedules A through D plus various notices and disclaimers.
- Schedule A Sets out the date of the commitment, who the title company is proposing to insure (both purchaser & lender –if financed), the amount of title liability, the property title is insuring and how title to the property is currently held.
- Schedule B lists exclusions and exceptions to coverage, including such matters as deed restrictions, setback requirements, and utility easements. These are items that affect the property and will probably always affect the property.
- Schedule C Shows items that must be resolved prior to closing. These items might include include existing liens, bankruptcies, abstracts of judgement, marital status issues, probate issues, vesting problems or mechanic’s lien affidavits.The title company routinely requires release of these. If there are more serious issues like mechanic’s liens, judgments against the seller, tax liens, lawsuits affecting title, heirship issues due to a previous owner dying without a will, or gaps in the chain of title, the commitment will indicate what must be done if title is to be insured in the name of the new owner. Specific curative action may be required.
- Schedule D is a disclosure of ownership of the title insurance company and underwriter as required by regulatory law. It also shows the estimated premiums to be charged at closing. Please review your contract to determine what you will be charged.
- Please note this information does not constitute legal advise
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