Understanding The Title Commitment

What is a Title Commitment?
The title commitment is a written document that results from the title search that we as the title company perform and is produced after the title company has received a copy of a signed sales contract and a check for the earnest money.

As the Buyer(s) or/and Agent, it is essential to review the title commitment because it shares potential issues and discloses encumbrances on the title (like deed restrictions, easements, and leases). Below is a general guide that describes items A-D of the title commitment.

Schedule A (Actual Facts)
Schedule A of the commitment represents the DETAILS of the transaction, such as who, what, where, and how. It will also include the legal description of the subject property, the buyer’s name (called the Proposed Insured), the seller’s name, and the amount of coverage for the property.

Schedule B (Buyer Notification)
This section contains the requirements, exceptions, and exclusions. Schedule B is the most important part of the title commitment.

Schedule C (Clear Before Closing)
This section is the to-do list of everything that must be cleared up before successfully closing. Schedule C includes items such as existing liens, bankruptcies, abstract of judgments, marital status issues, probate issues, vesting problems, and mechanic’s lien affidavits.

Schedule D (Disclosure)
This section requires regulatory disclosure of the premiums to be charged for the policy(ies) and the beneficiary(ies) of such premiums.

As always, THANK YOU FOR ALLOWING HERITAGE TITLE COMPANY THE OPPORTUNITY TO
COMPLETE YOUR TRANSACTION. WE LOOK FORWARD TO WORKING WITH YOU!