What is the Title Commitment and How to Read It
The Title Commitment is not just a formality, it is the blueprint for a successful closing. Understanding this document is essential for every high-caliber Realtor and informed homebuyer. It is where we detail the conditions we must meet to issue a clear title policy.
What Exactly Is the Title Commitment?
The Title Commitment is a promise. It is the title insurance underwriter’s pledge to issue a policy to the prospective buyer (and their lender) after certain conditions are met.
It’s our formal report following the comprehensive title search. We have reviewed the public records—deeds, mortgages, court documents, and liens—to discover the property’s history. The Commitment then lays out the findings in four major sections, called Schedules.
While all four Schedules are important, we focus on where complexity often arises: Schedule B-I (Requirements) and Schedule B-II (Exceptions). Reading and understanding these schedules helps Realtors and their clients understand what needs to happen—and what the title agency will do—before a title policy can be issued.
Why You Must Understand Schedule B-I: The Requirements
Schedule B-I is the action plan. It outlines every administrative or legal step that must be taken and satisfied before we can issue the title insurance policy. If something on this list is outstanding, the closing will be delayed.
| Common B-I Requirements | Why they matter to you |
|---|---|
| Clear the Existing Mortgage | We require confirmation and documentation that the seller’s current mortgage is paid off and officially released from the property record. |
| Taxes/Assessments Paid | We require evidence that all current property taxes, HOA dues, and municipal liens are paid and up-to-date. |
| Signed Documents | Specifies which documents (like the deed, affidavits, etc.) must be signed correctly by the appropriate parties (including spouses, trustees, or LLC members) at closing. |
The Expertise Advantage: When your title partner has high-level legal and operational oversight, we identify potential issues in B-I immediately—like a missing spouse signature or an ambiguously worded trust document—allowing us to proactively engage the seller’s side to clear the requirement long before the closing date.
Why You Must Understand Schedule B-II: The Exceptions
Schedule B-II lists all the items that your title insurance policy will not cover. These are clouds or encumbrances that exist on the property and will remain even after the sale. Ignoring B-II can lead to expensive disputes down the road.
| Common B-II Exceptions | Why they matter to you |
|---|---|
| Covenants, Conditions, and Restrictions (CC&Rs) | These are the rules governing the property, common in HOAs or PUDs, which outline restrictions and other important information on use of the property. |
| Easements | Legal rights held by others (utility companies, neighbors) to use a portion of your property. |
| Standard Exceptions | These include items that can’t be discovered in the public record (e.g., rights of parties in possession, unrecorded liens). |
The Takeaway for Top-Tier Professionals
Your time is valuable. A competent Title Commitment review means fewer surprises, fewer delays, and a smoother experience for your client.
When you partner with Avalon you get a team whose expertise in B-I and B-II is leveraged to guarantee one result: You look great to your client, and the deal closes on time.
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