Wait—What the Heck Is a Title Commitment?
So, you’re a brand-new real estate agent. You’ve got your first buyer or seller, your head is spinning from all the new lingo, and then—bam—someone emails you something called a “title commitment.” You open it… and your brain says:
“Uhhhhh. Is this thing even in English?”
Deep breath. You’re not alone. A title commitment might look like a pile of legal gibberish, but it’s actually your best friend in a real estate deal. It’s the title company’s promise:
“Hey, we’re gonna insure this title, if these conditions are met.”
Think of it like a sneak preview of the title insurance policy—and a heads-up for any landmines before closing day.
Why This Thing Matters (Even More Than Free Office Donuts)
The title commitment tells you:
- Who actually owns the property (spoiler alert: it better be the seller!)
- If there are red flags—liens, bankruptcies, or weird easements
- What the buyer will and won’t be insured against
So yeah… it matters. And learning to read it now will make you look like a rockstar to your clients later. 🕶️
Title Commitment = 4-Part Sandwich (No Mayo, Just Info)
A title commitment has four main sections, and once you learn what they are, it’s actually not that bad.
🥪 Schedule A: The “What Are We Insuring?” Section
This is the front page—the deal summary. You’ll find:
- Effective Date (the date title was last checked)
- Proposed Insured (usually the buyer + lender)
- Policy Amount (usually sales price or loan amount)
- Current Owner (who legally owns the property)
- Legal Description (not the street address—think lot/block/subdivision)
🔥 Quick Tip: If the owner listed isn’t your seller? 🚨 Big problem. Call the title company immediately.
🥬 Schedule B-I: “What Has to Happen Before We Close”
This is the to-do list for the title company. These are things that must be cleared before the title policy can be issued.
Typical stuff:
- Pay off existing mortgage
- Release any old liens
- Provide seller’s marital status affidavit
- Sign closing docs
🧠 Rookie Reminder: If these don’t get done, the deal might not close. Be aware. Be helpful. Be sober.
🍅 Schedule B-II: “Here’s the Fine Print (and Landmines)”
This section is what the title policy won’t cover. Think:
- HOA rules and restrictions
- Easements (like utility access)
- Encroachments
- Setback violations
Some of this is normal. Some of it can be a big, hairy problem.
🚩 RED FLAGS TO WATCH FOR:
- Liens (tax, construction, HOA): Can delay or kill your deal
- Access issues: No legal road to the property? Yikes.
- Easements that limit use: That dream pool may not be buildable.
🧀 Schedule C (Optional): “Extra Credit” Info
Some title companies include a Schedule C or added notes. It might mention:
- Divorce decrees
- Bankruptcy proceedings
- Probate details
Pro Tip: These don’t always appear, but when they do, they scream “Pay Attention.” Ask questions if you’re unsure.
Real Talk: You Don’t Have to Know It All—But You Do Need to Know What to Look For
You don’t need to turn into a title ninja overnight. But you should be able to:
- Spot a mismatch in ownership
- Identify liens or clouds on title
- Know when to ask questions (aka all the time when you’re new)
Your title rep (like us 👋) is here to help. Don’t be afraid to say:
“Hey, I’m still learning. Can you walk me through this commitment?”
That doesn’t make you dumb. It makes you smart and proactive.
Let’s Practice: What Would You Do?
Here are a couple real-world examples:
📄 Scenario 1:
Schedule A says the current owner is Jane Smith… but your seller is Jane and Bob Smith.
👉 Action: Ask title to confirm marital status and ownership. Bob may need to sign too.
📄 Scenario 2:
Schedule B-II shows a $4,500 roofing lien.
👉 Action: Seller needs to resolve it before closing. Otherwise, it may delay the deal—or affect the buyer’s loan.
📄 Scenario 3:
Schedule B-II lists a shared driveway easement.
👉 Action: Check with your buyer—this might not be a dealbreaker, but they should know!
