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The ABC's of Title Commitment

Wither you are a realtor, an investor, a builder, or homeowner, we know buying or selling a property can feel a bit overwhelming. To help educate and prepare you for a more seamless closing process, we've broken down the ABC's of title commitment.

couple going over paperwork with escrow officer

A title commitment is a document provided by a title company and is issued to the buyer and lender before closing on a property. It provides the buyer and lender protection should a dispute arise regarding ownership, liens, etc.

The title commitment has four parts, Schedules A, B,C, and D. Each part has specific information used by the title company to identify the terms and conditions for providing title insurance as well as any issues, exclusions or exceptions to the coverage. Below we have broken down the significance of each Schedule:

Schedule A - Basic Facts About the Contract

Schedule A includes basic facts about your contract such as:

  • Name(s) of proposed insured (both buyer and lender)

  • Effective date of commitment

  • Proposed amount of title insurance coverage

  • Current record owner of the property

  • Legal description of the property to be insured

Although most of it is pretty straightforward be sure to still take the time to proofread spelling and look for any small errors. It is also important that this section reflects your full legal names.

Schedule B - Exceptions to Coverage

Schedule B includes information about exceptions to coverage such as:

  • Restrictions

  • Taxes

  • Easements

  • Deed restrictions

  • Mineral reservations

  • Leases

  • Area and survey discrepancies

  • Rights of others

As the buyer, you are agreeing to any and all restrictions, exclusions, and exceptions outlined in this section of the title commitment that can affect property use and access. It is important to review this section carefully and discuss any questions you have with your title company.

Schedule C - Clear to Close

Schedule C identifies and addresses any items that must be resolved such as:

  • Liens

  • Bankruptcies

  • Marital status

  • Probate issues

  • Entities/trusts

  • Abstract of judgments

  • Vesting problems

Failing to address these issues in a timely matter will delay your closing or prevent it from taking place. A title policy can not be issued and new ownership can not take place until the issues listed in this section are resolved (usually by the seller).

Schedule D - Disclosure

Schedule D includes information of all parties with a share in the title premium such as:

  • Title agents

  • Underwriters

  • Attorneys

  • Beneficiaries

This section is simply a disclosure and is required by Texas state rules and regulations. It also includes the premiums to be charged for the policy.

Title insurance is an important safeguard for buyers and lenders. It is important that you fully understand the title commitment and that all clear to close issues are resolved in a timely matter. This will eliminate any issues and result in a much smoother closing process. If you still have questions on the general breakdown of title commitment contact Willow Bend Title for more insight. We are happy to share our expertise, but most importantly help in any way we can to provide you with a seamless real estate closing.


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