How to Read a Title Commitment — A Guide for Buyers and Agents

A Title Commitment is the title company's promise to issue a title insurance policy for the property after closing. It's issued at the beginning of the process of buying, selling, or refinancing real estate, and its purpose is to report the status of the title and the conditions under which the title company will issue a policy once the transaction has closed.

Does a Title Commitment Affect the Real Estate Process?

Before you close on your real estate purchase, you'll want to know everything you can about the property — including anything that might affect title (who owns and can use it). The best way to find out is to carefully review the title commitment for title defects, liens, and encumbrances that would be excluded from coverage.

The Three Sections of a Title Commitment

Schedule A

Contains information about the policy, the property, and the parties involved. You'll want to review the ownership interest on the property along with any claims, restrictions, or interests of other people involved in the property.

Schedule B-1

Sets out matters which must be furnished or addressed at or prior to closing. Many of these requirements are met in the normal course of closing, but others need to be addressed immediately so closing is not delayed.

Schedule B-2

Lists matters which the policy does not cover. These items constitute an encumbrance on the title to the property and include liens, restrictions, and interests of others excluded from coverage. They are listed numerically as "exceptions."

A commitment for Title Insurance provides the opportunity for parties to the transaction to request removal of objectionable items before purchase.

Need help reviewing a title commitment? I'm here for it. Brenna Harper — brenna.harper@ctt.com | 303-748-3965.