Understanding Title Commitments: What You’re Really Signing

If you're preparing to buy or sell real estate, chances are you’ll encounter a title commitment
before reaching the closing table. But what exactly is this document, and why is it so important?

Whether you're a first-time homebuyer or a seasoned investor, understanding the title
commitment is key to ensuring your ownership is protected, and that there are no surprises
down the road.

What Is a Title Commitment?
A title commitment (also called a title binder or commitment for title insurance) is a formal
document issued by a title company that outlines the conditions that must be met before a title
insurance policy will be issued. Think of it as a preview of your future title insurance coverage.

The commitment reflects the results of a title search, which investigates the history of the
property, including prior owners, liens, judgments, easements, and legal claims.

According to the American Land Title Association (ALTA), the title commitment acts as a
blueprint for the final title insurance policy, helping buyers, sellers, lenders, and agents identify
and resolve any potential issues before closing.

What’s Included in a Title Commitment?
A title commitment typically includes four key sections, often referred to as "schedules":

Schedule A: The Basics
This section lists the key details of the transaction, including:

● The buyer and seller
● The proposed insured parties (buyer/lender)
● The type and amount of insurance coverage
● The legal description of the property

Why it matters: Schedule A verifies that the correct parties and property are being insured.

Schedule B – Section I: Requirements
This outlines the conditions that must be met before the title insurance policy can be issued.
Examples include:

Paying off existing liens or mortgages

Recording the new deed

Providing proper documentation

Why it matters: These must be resolved before or at closing to ensure a clean transfer of title.

Schedule B – Section II: Exceptions
This is where you’ll find items not covered by the title insurance policy—such as:

• Easements
• Building restrictions
• HOA covenants
• Encroachments
• Mineral rights

Why it matters: Buyers should review these carefully to understand any limitations on their
property rights.

Schedule C (in Texas): Clear to Close Issues
In Texas, Schedule C outlines items that must be cleared before closing can happen, like unpaid
taxes, child support liens, or probate issues.

Why it matters: These are often the issues that delay closings if not addressed early.

Why It’s Important to Read the Title Commitment
While it may feel like legal fine print, reviewing the title commitment can protect you from:

• Buying a home with undisclosed liens
• Unexpected access restrictions
• Legal disputes over ownership

Your real estate agent and title company should walk you through the title commitment and help
you understand anything that could impact your investment.

How HUB City Title Helps
At HUB City Title, we don’t just hand you a stack of papers, we take the time to explain what
you’re signing and why it matters. Our experienced team works side-by-side with buyers,
sellers, agents, and lenders to clear any issues quickly and guide you confidently through
closing.

With in-house title examiners and deep local knowledge, we ensure your title is not just
marketable, but fully protected.

Final Takeaway
A title commitment isn’t just paperwork, it’s your preview of ownership rights and a vital step in
protecting your investment. Taking the time to review it carefully can save you time, money, and
stress in the future.
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Have questions about your title commitment? We’re here to help.