You've just received a thick document from the title company, and it's full of legal jargon, schedules, and exceptions. It's easy to set it aside and hope for the best. But the title commitment is your best tool for catching problems before they delay or derail your closing. It's a promise from the title company to issue a title insurance policy after closing, and it outlines exactly what must happen and what won't be covered. Reading it carefully can save you from costly surprises later.
What does Schedule B-I of a title commitment list?
Select one answer.
What is a title commitment?
A title commitment is a document issued before closing that outlines the conditions for insuring the property title. It serves as a promise from the title company to issue a title insurance policy once all requirements have been met. It is not the actual policy, but a preview of what the final policy will cover and exclude. The commitment is based on a thorough search of public records, which reveals the current ownership, any liens, and other encumbrances.
Most title companies use standard forms from the American Land Title Association (ALTA). These forms are organized into two main sections: Schedule A and Schedule B. Understanding these sections is key to reading your commitment effectively.
Schedule A: The basics
Schedule A is the "who and what" section. It confirms the fundamental details of the transaction. You should verify the following:
- Proposed insured: Your name (or your LLC/trust) should appear exactly as it will on the deed.
- Current owner: The seller's name must match how title is currently held. If it doesn't, you may have a vesting problem.
- Legal description: This should match the property you're buying, including any lot or parcel numbers.
- Policy amount: This is usually the purchase price for an owner's policy. Make sure it's correct.
- Effective date: The date through which the title search was run. Any issues recorded after this date may not be covered.
If anything in Schedule A is wrong, fix it early. It's much easier to correct a name or legal description before closing than to deal with the consequences later.
Schedule B: Requirements and exceptions
Schedule B is split into two parts: Requirements and Exceptions.
Requirements (Schedule B-I)
These are the "to-do" items that must be completed before the title company will issue the final policy. Common requirements include:
- Paying off existing mortgages or liens
- Paying property taxes or municipal assessments
- Recording the new deed and mortgage
- Providing additional documentation from the buyer, seller, or lender
Many requirements are handled behind the scenes by the title company or closing agent. But you should review them to understand what needs to happen and when. If a requirement is not met, the policy may not be issued, which can delay your closing.
Exceptions (Schedule B-II)
Exceptions are items that the title policy will not cover. Some are standard, like easements for utilities or rights-of-way. Others are specific to your property and could affect how you use it. Red flags to watch for include:
- Easements that cut through buildable areas or access easements that benefit someone else's driveway
- Covenants or HOA restrictions that limit what you can do with the property
- Unreleased liens from old mortgages or judgments
- Ownership disputes or probate issues that haven't been resolved
Not every exception is a deal-killer. Many are manageable. But you need to know what they are and how they might affect your plans. If an exception concerns you, ask your title company or attorney to explain it and whether it can be removed or modified.
Common red flags that delay closings
Several issues frequently appear in title commitments and can delay or derail a closing if not addressed:
- Open or unreleased liens: Even if a debt was paid years ago, if the lien release was never recorded, it will appear as a cloud on title.
- Probate or estate issues: If the seller inherited the property but probate was never completed, title cannot transfer cleanly.
- Divorce complications: Both spouses may have ownership rights even if only one name is on the deed.
- Errors in public records: Misspelled names or incorrect legal descriptions can cloud the chain of title.
Identifying these issues early gives you time to resolve them. For example, you can request lien release documentation or confirm that probate is complete before you're deep into the closing process.
Actionable checklist for reviewing your title commitment
- Verify Schedule A: Check the proposed insured, current owner, legal description, policy amount, and effective date.
- Review Schedule B-I Requirements: List every item that must be completed and who is responsible for it.
- Scan Schedule B-II Exceptions: Highlight any easements, restrictions, or liens that could affect your use of the property.
- Ask questions: If anything is unclear, ask your title company or attorney to explain it in plain English.
- Resolve issues early: Work with the seller and title company to clear any red flags before the closing date.
By taking the time to read your title commitment carefully, you can avoid surprises and ensure a smoother closing. It's not just paperwork—it's your roadmap to a clear title.
How the Featured Expert Can Help
If you're dealing with a complex title issue or need a thorough title examination, Hazelwood & Associates, LLC offers detailed title abstracting and mineral rights investigations. Based in Wise, Virginia, this owner-operated firm has over 14 years of experience and a BBB A+ rating, serving residential and commercial clients across Southwest Virginia. They can help you understand your title commitment and ensure clear ownership before you close.
Quiz
What does Schedule B-I of a title commitment list?
- Requirements that must be met before the policy is issued
- Exceptions that will not be covered by the policy
- The legal description of the property