What is a title commitment?

It is the title insurer's offer to issue a title insurance policy once listed conditions are met. It shows who owns the property, the proposed policy amount and insured, what must be done before closing and what the policy will not cover.

What is the difference between requirements and exceptions?

Requirements are items that must be completed before closing, such as paying off the seller's mortgage or recording a deed. Exceptions are matters the policy will not cover, such as recorded easements or restrictions.

When do I receive the title commitment?

After the title search is complete, typically early in the transaction so there is time to clear requirements before closing.

Who should review the title commitment?

The buyer, the buyer's agent and, for a financed purchase, the lender. Buyers can also ask an attorney to review it. Ask the title company to explain any exception you do not understand.

Title Commitment Explained: Florida Guide

Q: Can exceptions be removed?

Some can. Standard exceptions are often removed at closing with seller affidavits and, for survey matters, a current survey. Specific recorded items usually remain, so review them before closing.

After the title search, the title company issues a title commitment. It is the insurer's written promise to issue a title insurance policy once certain conditions are met, and it is the best preview you get of what your policy will and will not cover.

Schedule A: The Basics

Schedule A summarizes the deal:

Effective date of the search
Proposed policy amount and the proposed insured, such as the buyer and the lender
Current owner of record
Legal description of the property

Check that names are spelled correctly and the legal description matches the property you are buying.

Requirements: What Must Happen Before Closing

The requirements section lists what must be done for the policy to be issued. Common requirements:

Pay off and release the seller's mortgage
Pay or release recorded liens and judgments
Record the deed and the new mortgage
Provide proof of authority for an LLC, corporation or trust that is signing
Probate or other documents when an owner has died
Owner's and seller's affidavits

The title company works through these with the seller, lenders and other parties. Each one must be cleared before closing.

Exceptions: What the Policy Will Not Cover

Exceptions are matters the policy will not insure against. They come in two kinds.

Standard exceptions appear on most commitments and cover things the public records cannot show, such as rights of people in possession, unrecorded liens and matters a survey would reveal. Many are removed at closing based on seller affidavits and, for survey matters, a current survey.

Specific exceptions are recorded items found in the search, such as:

Utility easements and rights of way
Deed restrictions and HOA covenants
Recorded plats and their notes
Mineral or other reserved rights

These usually stay on the policy. Most are normal, but some can limit how you use the property, such as an easement where you plan to build a pool.

Questions to Ask Before Closing

Are all names and the legal description correct?
Which requirements are still open, and who is handling each one?
Which standard exceptions will be removed at closing?
Do any specific exceptions affect how I plan to use the property?
Is survey coverage included, and do I need a new survey?

How We Handle Title Commitments

At Title Warehouses of America we issue the commitment after the title search, explain each requirement and exception, and track every requirement to closing. Learn more on our title services page or call (888) 354-8005.