What Is a Title Commitment?

A title commitment, also called a title binder or preliminary title report, is a document issued by a title insurance company. It precedes the final title insurance policy and outlines the terms, conditions, and exclusions under which a title insurance policy will be issued.

The commitment essentially serves as a promise: if the stated conditions are met, the title company will insure the buyer and lender against title defects. Understanding this document is key to ensuring there are no surprises on closing day.

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Sections of a Title Commitment

The title commitment is generally divided into four main sections:

1. Schedule A: The Basics

This section includes:

• Effective date of the commitment
• Legal description of the property
• Proposed insured parties (usually the buyer and the lender)
• Policy amount

Why it matters: Schedule A confirms that the correct property and parties are being insured. Errors here can delay closing.

2. Schedule B-I: Requirements

Outlines conditions that must be satisfied before the title policy can be issued. This may include:

• Paying off existing mortgages
• Satisfying liens
• Recording the deed and mortgage

Why it matters: Failure to meet these conditions can void the title policy or delay closing.

3. Schedule B-II: Exceptions

Lists issues the title policy won’t cover, such as:

• Easements
• Building setbacks
• Utility rights-of-way
• Covenants, conditions, and restrictions (CC&Rs)

Why it matters: These exceptions may affect your ability to use or develop the property as intended.

4. Legal Description

This is a precise, survey-based description of the property. It often includes references to metes and bounds or lot numbers within a subdivision.

Why it matters: A discrepancy in the legal description can cause major issues, particularly in rural or subdivided areas.

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Common Issues Found in Title Commitments

Title commitments may uncover items that need to be addressed before closing. These can include:

• Judgments or tax liens against the seller
• Boundary disputes or overlapping legal descriptions
• Unreleased prior mortgages
• Ownership questions, such as undisclosed heirs or prior fraudulent transfers

Identifying these early allows parties to resolve them without delaying the transaction.

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Why Title Commitments Matter

While buyers often focus on home inspections and financing, the title commitment is equally critical. It provides:

• Legal protection: Ensures you’re purchasing a property with a clear title.
• Transparency: Allows you to understand any restrictions on the property.
• Peace of mind: Protects your investment from future legal disputes.

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How All Seasons Title Supports You

At All Seasons Title, we guide clients through every part of the title process—including reviewing and explaining title commitments. Our team works proactively with realtors, lenders, and buyers to resolve any title issues before they become problems at the closing table.

We also ensure clients understand the implications of every item listed on their title commitment. Transparency and communication are key pillars of our service philosophy.

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Tips for Reviewing a Title Commitment

1. Read Every Section Thoroughly
   Don’t skim. Look carefully at exceptions and requirements.
2. Compare the Commitment to the Sales Contract
   Ensure names, purchase amounts, and property details match.
3. Ask Questions
   If you see unfamiliar terms or restrictions, consult with your title company or attorney.
4. Request Endorsements If Needed
   Title endorsements can add additional protections based on your unique needs.

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Conclusion

A title commitment is more than just another piece of paperwork—it’s a vital checkpoint in the closing process. Understanding its contents and implications empowers you to move forward with confidence.

For personalized help navigating title commitments and other aspects of property transactions, contact us