Title Commitment

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The title commitment is a promise to insure and issue a final title policy on a subject property. The commitment lists the basic facts of the transaction, necessary requirements and exceptions to title. All requirements must be satisfied before the title company can insure that title is free from reasonable doubt or defect. By preparing the commitment the title company is informing all parties to the transaction of all known burdens affecting the property and committing to insure when all requirements have been meet.

Delivery Receipt

A list all the parties that will be received the title commitment and any updates.

Schedule A (basic facts)

List the basic facts of the transaction, including:

• effective date
• buyer
• new lender
• type and amount of title policy to be issued
• sale price and new loan amount
• current owner
• legal description and site address (title company only insures legal description)
• title insurance fees

Schedule B-1 (requirements)

This area list the title companies requirements that must be satisfied before the closing can take place and a final title policy issued. Here are examples of common title requirements:

• release (payoff) of existing deed of trust
• release of mechanic liens
• satisfaction of judgment
• copy of operating agreement if seller is corporation
• warranty deed from seller to buyer

Schedule B-2 (exceptions)

Exceptions are items not being insured by the title company. Exceptions also disclose to buyer burdens that will affect the subject property after closing, such as covenants, conditions and restrictions (CCR's); easements (a right to use the property) and/or mineral reservations.

Cover Sheet

The cover sheet list the general terms and exceptions to the commitment. It limits liability to the amount stated in the commitment and alos limits the liability if any of the parties in the transaction have knowledge of a lien or encumbrance and fail to let the title company know.