How Do You Read a Title Commitment?
Start with Schedule A to confirm the names, legal description, policy amount, and estate type match your contract. Then read Schedule B-I (or Schedule C in Texas) for the requirements that must be cleared before the title company will issue a policy. Finally, review the Schedule B-II exceptions to understand what the policy will not cover and whether any of those exceptions limit your buyer's intended use of the property.
What a Title Commitment Is and Why Agents Should Read It
A title commitment is the title company's promise to issue a title insurance policy after closing. According to First American Title, a title commitment details the terms of the title insurance policy that will be provided after you purchase a home, along with the requirements that must be met before the policy can be issued. First Alliance Title in Denver describes it similarly: the commitment contains the same terms, conditions, and exclusions that will appear in the actual title insurance policy.
When an agent forwards the commitment to the file without reviewing it, any issues buried in it — a name mismatch, an unreleased lien, an easement that blocks a planned addition — stay hidden until the closing table. At that point the options are a last-minute document rewrite, a delayed closing, or both. Reading the commitment when it arrives gives you time to raise questions and get problems resolved while there is still room in the timeline.
Schedule A: Verifying the Transaction Details
Schedule A is the cover page of the commitment. It sets out the basic facts of the transaction. Each field needs to match your contract, and a mismatch in any one of them can cascade into problems at closing.
| Field | What to check | Why it matters |
|---|---|---|
| Effective date | Date should be recent enough to reflect the current title status | An old effective date may not capture liens or transfers recorded after that date |
| Proposed insured | Buyer's full legal name matches the contract exactly | A misspelled or incomplete name requires a document correction before closing |
| Current owner | Seller's name matches the contract — watch for additional owners not on the contract | According to Texas National Title, if additional people are listed who did not sign the contract, you likely do not have a valid binding contract |
| Legal description | Compare against the contract exhibit or survey | As Texas National Title notes, the legal description controls the transaction, not the physical property address |
| Policy amount | Owner's policy matches the purchase price; lender's policy matches the loan amount | A wrong amount means the wrong coverage limit on the final policy |
| Estate type | Should read fee simple unless you expect a different interest | An unexpected estate type signals a title issue that needs clarification |
Schedule B-I Requirements: The Action Items You Need to Chase
Schedule B-I (called Schedule C on the Texas commitment form) lists every requirement that must be satisfied before the title company will issue the policy. First American Title describes this section simply: it lists all the requirements that must be met before your policy will be issued. In Texas, Texas National Title calls Schedule C the Clear To Close schedule because everything listed there must be addressed prior to or at closing in order for the title company to fund and issue its policies.
Common items found in this section include mortgage liens, tax liens, abstracts of judgment, and assessment liens.
Not every requirement falls on you. Texas National Title distinguishes between simple matters and complex ones. Simple matters are typically handled by the closing team, such as ordering a payoff statement on an existing lien or tracking down certified copies of documents. The more complex matters require participation by the seller and listing agent to resolve in time for closing.
Schedule B-II Exceptions: Standard Boilerplate vs. Deal-Specific Red Flags
Schedule B-II lists the matters that the title insurance policy will not cover. First American Title explains that some exceptions can be removed from the policy if certain requirements are met, while other exceptions are unique to the property and typically cannot be removed. As an agent, your job is to separate the boilerplate from the items your buyer needs to understand.
In Texas, the distinction is defined by the Texas Department of Insurance. According to Texas National Title, a standard exception includes promulgated language that appears in every owner's or lender's title policy issued in Texas. These exceptions do not change. A specific exception is one that affects the property to be insured and is not standard in all Texas title policies. Specific exceptions can include restrictions, easements, mineral severances, and setback requirements.
First Alliance Title recommends reviewing the exceptions so that you have an understanding of how they may impact your use and ownership of the property. Read each property-specific exception and ask whether it conflicts with anything the buyer plans to do with the property. FTIC notes that the buyer should read the exceptions section carefully, as there may be a limited time to make any objections before the title insurance is issued and the closing is completed. Check your contract for the specific objection deadline.
Endorsements: Insuring Over Exceptions
When a buyer objects to a specific exception, an endorsement may be available. FTIC explains that if the buyer protests an exception, the title company may be convinced to insure over it with an endorsement, obtain a release, or provide another document to eliminate the exception.
Ask the title company which exceptions on the commitment can be addressed through endorsements. Include this question in your list of follow-up items so it is resolved before the buyer's objection deadline passes.
Red-Flag Items That Delay Closings
Some items in the commitment signal a problem that takes time to resolve. If you spot one of these late, it can push your closing date.
- Mortgage liens listed in the requirements schedule that must be paid off or released before the title company will clear the requirement
- Judgment liens: abstracts of judgment listed in Schedule B-I or Schedule C that must be paid or resolved before the title company will clear the requirement
- Tax liens and assessment liens that appear in the requirements schedule and must be addressed prior to or at closing
- Seller name mismatches tied to death, divorce, or bankruptcy: these require additional legal documents before title can pass
Texas National Title lists mortgage liens, tax liens, abstracts of judgment, and assessment liens as the types of items found in the requirements schedule. Each one needs a resolution path and a timeline. When you spot any of these, contact the title company immediately to understand what is needed and how long it will take.
The ALTA 2021 Commitment Form and State Variations
Most title companies across the country use the 2021 ALTA Commitment for Title Insurance. First American Title confirms this is the standard commitment form issued in most states. First Alliance Title in Denver notes that, like most title companies across the nation, they use standard forms distributed by the American Land Title Association.
However, not every state follows the same layout. First American Title notes that some states use their own special form, which may be formatted differently. If you work in Texas, the requirements you would look for in Schedule B-I on the ALTA form appear in Schedule C instead.
Title Commitment Review Checklist for Real Estate Agents
Use this checklist each time a title commitment arrives. It covers the items discussed in this guide and helps you prepare a list of questions for the title company before the objection deadline.
- Confirm the Schedule A effective date is recent enough to reflect current title status
- Verify the buyer's full legal name on Schedule A matches the contract exactly
- Verify the seller's name on Schedule A matches the contract — flag any additional owners, deaths, divorces, or missing signers
- Confirm the estate type is fee simple or the expected interest
- Check that the policy amount matches the contract purchase price (owner's policy) or loan amount (lender's policy)
- Compare the legal description in Schedule A against the contract exhibit or survey — the legal description controls, not the street address
- Review Schedule B-I or Schedule C requirements and list every open item that needs clearing before closing
- Mark which B-I requirements the title company will handle (payoff demands, recording) versus which need agent or seller action (additional signatures, affidavits, lien releases)
- Review Schedule B-II exceptions and separate standard boilerplate exceptions from property-specific exceptions
- Read each property-specific exception and flag any that could limit the buyer's intended use of the property
- Check for mortgage liens, judgment liens, tax liens, or assessment liens that must be cleared before closing
- Ask the title company whether any exceptions can be removed through an endorsement
- Note the contract deadline for the buyer to object to exceptions
- Compile your open questions and confirm the timeline for clearing all requirements before closing
To the title company: I have reviewed the title commitment for the property at [address], effective [date]. I have the following questions and need confirmation on timelines for each open item before our closing date of [date]. [List your questions here, one per line.]
Copy the message template above and fill it in with your deal details. Sending a single organized message saves back-and-forth and puts your questions on the record.
Frequently Asked Questions
Is a title commitment the same as a title?
No. A title commitment is the title company's promise to issue a title insurance policy after closing. It outlines the terms, conditions, exceptions, and requirements that must be met before the policy is issued. The title itself refers to the legal ownership of the property. The commitment is a document you receive during the transaction; title is the right you hold after closing.
What does it mean when a title commitment is complete?
At that point the commitment is ready for the buyer and lender to review and raise any objections within the contract deadline.
How long is a title commitment valid?
The effective date on Schedule A marks the point in time through which the title search is current. Liens or transfers recorded after that date may not be reflected. Check with your title company for the specific expiration or update requirements that apply to your commitment.
