What Is a Title Commitment? A Guide for Buyers & Sellers

A Title Commitment is a document issued by a title company outlining the conditions under which it agrees to issue a title insurance policy for a transaction. Title insurance is unique in the insurance space in that it protects policy holders from events that happened in the past.

Key purposes of a Title Commitment

The primary purposes of the Title Commitment is to identify any existing liens, defects, or restrictions on the property, ensure the seller has the legal right to sell, and make the buyer aware of recorded issues prior to Closing.

Identifying Liens and Issues

It lists liens (such as unpaid taxes or mortgages), easements, or legal restrictions that must be cleared before the property changes ownership.

Ensuring Clear Title

It verifies that the seller is the true owner and provides a clear, marketable title, reducing risks for the buyer and lender.

Setting Closing Requirements

It serves as a checklist (Schedule C) of requirements—like paying off existing debt—that must be met to issue the final insurance policy.

Disclosing Coverage Exceptions

It outlines what the policy will not cover (Schedule B), allowing the buyer to understand limitations, such as property line issues or easement rights.

Other Important Things to Keep In Mind

How Will the Title Commitment Arrive?

The Title Commitment is sent to all parties in the transaction by the Title Company handling the sale. It details the property address, buyer, seller and real estate representatives, and provides links to county and public records for both parties’ review.

What Should I Do After I Receive the Title Commitment?

All parties -- especially the Buyer -- should watch their email inbox very carefully for the Title Commitment to arrive early in the transaction. Keep in mind this is a standard format email sent by the Title Company that unfortunately can look like "junk mail" or "spam" to the untrained eye. After the Title Commitment arrives, read all pages thoroughly. Additionally, click, review, and save (if you like) all linked documents in Exhibit B "Exceptions" before your Title due diligence period expires.

What Should I Do if I Have Questions?

Feel free to call the Escrow Officer handling the transaction to ask questions. They see these documents every day, have underwriters on staff with considerable professional expertise, are there to help, and welcome your questions. If you find a unique contained item in your Commitment, and/or cannot get sufficient clarification on a question important to you from Title Company representatives, buyers are advised to obtain legal advice from a real estate attorney who specialists in title matters.

You can read more about How to Read a Title Commitment here.

Anything Else I Should Know?

Keep in mind your Title Commitment may be updated and resent to all parties from time to time before closing as administrative information changes (i.e.,. new lender, requirements fulfilled, name corrections, etc). You can see the reason for the policy update on the very first page of the email.

Work with an Expert

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.

Understanding real estate doesn’t have to be confusing. I break things down for my clients so they can buy or sell with confidence. Reach out to schedule a consultation today.