A title commitment is a document created by a title company or real estate law firm outlining the promise to issue a title insurance policy, detailing requirements, exceptions, and exclusions. It consists of three main parts: Schedule A, which includes property details and policy types; Schedule B-I, listing requirements for the policy; and Schedule B-II, outlining exceptions or exclusions from coverage. Homebuyers should carefully review this document to ensure accuracy and address any concerns promptly with their real estate professionals.

1. Anatomy
of a
Title Commitment
1.
2.
(a)
(b)
3.
4.
5.
Schedule A
Commitment date
Policies to be issued
(Homeowner and/or Lender)
Interest in the land
(fee simple, leasehold, etc.)
Current owners
Legal Description
The Title Commitment is the document a title company
or real estate law firm creates as a promise to issue a title
insurance policy. It will show the requirements,
exceptions, and exclusions that will be in the final policy.
Homebuyers should be sure to review and understand
the terms of this document.
Here are the 3 basic parts of an ALTA Title Commitment.
The first page of the Title Commitment will contain the basic
information of the property, the effective date of the policy,
and the type of policy or policies to be issued under Schedule A.
Not all states require an owner’s policy to be issued with the lender’s
policy, so be sure that a homeowner’s policy is included here.
Homebuyers should be sure there are no discrepancies in the basic
information found on the purchase agreement, the deed, and the
closing disclosure.
1.
2.
(a)
(b)
3.
4.
5.
1.
2.
(a)
(b)
3.
4.
5.
(a)
(b)
Schedule B-I
Requirements
Breakdown of steps to
meet the requirements
All Title Commitments will list the Requirements or Conditions of the
policy. In some areas, it may be in another section if an standard ALTA
form isn’t used. A common Requirement is that the title company will
ensure the title is properly conveyed to the new owner and a mortgage
or deed is recorded in their name while the old mortgage lien is released.
1.
2.
(a)
(b)
3.
4.
5.
1.
2.
3.
4.
5.
6.
7.
8.
Schedule B-II
Exceptions and/or
Exclusions
Examples: Public Utility
Easements and Right of Ways or
Assessments, dues, or taxes that
are not yet due or payable.
2
1
3
The Exceptions and Exclusions are things the policy will not insure.
It’s possible to work with the title company to insure over some items
with an endorsement or eliminate the exception by obtaining a release,
affidavit, waiver, quitclaim deed or other official document.
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Ask Questions!
Never hesitate to reach out to your real estate agent,
lawyer, or title agent for clarification. Make sure that
any questions you have are answered in case there are
any objections to the stipulations within the commitment.
Based on your contract, you may be able to negotiate
something that you find unacceptable, but you only have
a short period of time to work with the title company to
resolve them.