How to Read a Title Commitment 🤔

Hi, I'm Michelle. I work with all kinds of clients. Experienced buyers and sellers, first-timers, and everything in between. In my professional role I take client education seriously and I address a lot of questions. One of the things I frequently discuss is how to review a Title Commitment. Let's get started:

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What is a Title Commitment?

 

A title commitment outlines what a title company will insure when you buy a home—understanding it helps buyers spot issues, exceptions, and ensure clear ownership before closing. Here's what buyers need to know:

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In nearly every real estate contract the seller agrees to provide the buyer with title insurance. Before closing you will receive a “title commitment” for careful review. The title commitment is essentially the insurers promise (i.e., commitment) to issue the title insurance policy after closing, and contains the terms, conditions and exclusions that will be in the actual title insurance policy. The title commitment also identifies any specific requirements that need to be addressed prior to closing so that a title policy can be issued. Most title companies across the nation use standard forms for title commitments and title insurance policies. The forms are distributed by the American Land Title Association (ALTA). Although your title commitment contains items unique to your particular transaction, the typical ALTA title commitment covers the following information in the standardized format outlined below. 

Schedule A:

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This section covers the basics of the transaction, such as the name of the person who currently holds title, the property's legal description, the name of the proposed insured (buyer), the sales price, and name of lender. Make sure these items are correct. 

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Schedule B:

 

This part of the title commitment is broken into two distinct parts:

 

Requirements — 

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This section lists everything that must be addressed prior to and before closing such as ... paying off taxes and the seller's existing mortgages, releasing liens on the title, correcting any errors in the title, and recording the new deed and any new loan documents for the new buyer.

 

Exceptions  — 

 

This section lists things that won’t be covered under the title insurance policy, and is extremely important to review. Examples of exceptions usually include mineral and water rights, utility and access easements, Homeowner Association covenants and restrictions, and existing plat restrictions. Buyers should review exceptions very carefully to have an understanding of how they may impact the use and ownership of the property.

Electronic title commitments contain hyperlinks to documents recorded with the County Clerk and Recorder making it easy to review the documents. It's a good idea to download and keep a copy for your files separately because the hyperlinks will expire in about 30 days after closing.

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Key Points
 

Title professionals are available to help you understand your title commitment and to clarify any questions prior to closing. Don’t hesitate to reach out to them directly for explanations or clarification as needed.

In some cases, buyers may need to seek additional review or guidance from a real estate attorney who specializes in title matters for further professional and legal advice.
 

If you have any questions about your title commitment, or about a specific requirement or exception, be sure to contact the title company or a real estate attorney for more information before the Record Title Objection deadline.

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Your Due Diligence Advantage

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Michelle Schwinghammer (colloquially known as "Schwing") is a real estate agent, broker associate with West + Main Homes, and the local expert behind SCHWINGSTATE LLC. Operating across the Denver Metropolitan area, Michelle specializes in ensuring her clients are educated, protected, and empowered.

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Let’s strategize together. 

 

Schedule your Consultation now.​