Reading a Title Commitment Like a Pro

06 April 2022

If you've ever received a title commitment and felt your eyes glaze over at the wall of legal language, you're not alone. Yet this document is one of the most important pieces of paper in your entire home purchase, and learning to read it can save you from costly surprises down the road. Here's how to approach it with confidence.

What Is a Title Commitment, Exactly?

A title commitment is essentially a promise: the title company is committing to issue a title insurance policy once certain conditions are met. Before making that promise, the company has researched the property's history, and the commitment summarizes everything they found. Think of it as a health report for the property's ownership. Just as a doctor lists both healthy vitals and areas of concern, the commitment lists what's clean about the title and what problems or restrictions exist.

The document typically has four main sections: Schedule A, Schedule B-1 (Requirements), Schedule B-2 (Exceptions), and the legal description. Each one tells you something different, and together they tell you whether the property can actually be transferred the way you expect.

Schedule A: The Basics You Must Verify

Schedule A contains the fundamental facts: the proposed insured, the current owner, the property's legal description, and the amount of coverage. This is where mistakes in names, spellings, or parcel details first surface, and those mistakes matter. A misspelled name can delay closing; an incorrect legal description can cause a host of problems later.

Before anything else, check:

That the current owner's name matches exactly what you saw on your purchase agreement.
That the legal description matches the property you toured, not just the street address.
That the coverage amount aligns with your purchase price.

Schedule B-1: The Requirements Before the Company Will Insure

This section lists what must happen before the title company will issue your policy. Common requirements include paying off an existing mortgage, releasing a prior loan, or recording proper documents at closing. Most of these items are routine and handled by the closing agent, but it's wise to review them so you know what's expected. If something looks unfamiliar—such as a requirement involving a probate, a divorce decree, or an entity trust—ask your title officer to explain it in plain language.

Schedule B-2: The Exceptions—Where the Real Reading Happens

Why exceptions deserve your full attention

Schedule B-2 lists everything the title insurance policy will not cover. These exceptions are where hidden risks live, and this is the section pros read line by line. Typical exceptions include easements, mineral rights, restrictive covenants, and rights of way for utilities.

Some exceptions are harmless—an easement for the power company's lines is normal. Others can genuinely affect how you use the property, such as a covenant prohibiting certain structures or a drainage easement running through your planned garden area. When you see an exception that references recorded documents, you have the right to request copies from the title company and read them yourself.

Key questions to ask about each exception:

Does this easement or restriction affect how I plan to use the property?
Is there anything listed here that I wasn't told about during negotiations?
Are old mortgages or liens still showing that should have been released?

If a lien from a previous owner appears, don't panic—but do raise it. It should be cleared before closing, and the title company will typically handle removal once they confirm it's satisfied.

Take Your Time and Ask Questions

Reading a title commitment isn't about becoming a lawyer; it's about being an informed participant in the largest financial transaction of your life. Review it as soon as it arrives, compare it against what you were promised, and bring your questions to the table early. Title professionals answer these questions every day, and a good one will happily walk you through each schedule. The few hours you invest in understanding this document can protect your investment for decades to come—and that's what reading like a pro is really about.