Understanding the Title Commitment

What It Is and Why It Matters

If you've ever glanced at a title commitment and thought, "What am I even looking at?"  - you're not alone.

Whether you're an agent, a buyer, or a seller, understanding the title commitment is key to avoiding surprises before closing. It's not just another document in the pile - it's a snapshot of the property's legal status and the roadmap to issuing clear title.

What Is a Title Commitment?

After a title search is performed looking for defects in the chain of history of the property that could lead to future problems, a title commitment is issued. It is a promise or commitment from the title company that they'll issue a title policy after closing if certain conditions are met. It outline what needs to happen before the buyer receives clear, insurable ownership of the property. 

The title commitment is divided into two parts:

1. Schedule A - The Basics (Like a Cover Page)

Think of this as the who, what, and how much. It includes:

• Effective date of the insurance policy

• Dollar amount of the policy

• Names of the insureds (e.g. new owner and/or lender)

• Name of the seller of the property

• Legal description of the property

👉 What to check: Make sure the information is complete and accurate

2. Schedule B-I - Requirements

This outlines what must happen - the requirements that must be done before the title company will insure the property. If any of the requirements cannot be met, there may be a cancellation or delay of the sale. Some of the common requirements include:

• Paying off existing mortgages, liens, judgments, home equity lines of credit (HELOC)

• Recording of a new deed

• Releases of liens, tax payments

• Finalizing probate or trust documents, if applicable

👉 Why it matters: If these aren't resolved before closing, the transaction could be delayed or canceled.

3. Schedule B-II - The Exceptions

These are items that will not be covered by the title insurance policy. Things like:

• Water and mineral rights

• Easements

• HOA rules and restrictions

• Survey discrepancies

Read the Exceptions section carefully as there may be a limited time to make any objections before the title insurance is issued and the closing is completed.  

👉 What to look for: Be aware of anything that might impact future use of the property - like an access easement or shared driveway.

Check Your Contract: Deadlines Matter

Every contract includes specific deadlines and time periods for title commitment delivery and review. In most standard Florida contracts, there is a limited time after the effective date (or before closing date) for the commitment to be delivered to the buyer, and, from there, the buyer has a set number of days (commonly 5) to examine the commitment and notify the seller in writing of any title defects.

💡Don't miss the deadlines: It is crucial to track these time periods closely and ensure any concerns are flagged and addressed promptly.

Why It's Important to Review the Title Commitment

A clean closing starts with clarity - and the title commitment gives you a legal snapshot of what's happening behind the scenes. It helps avoid last-minute issues, identifies potential delays early, ensures the buyer knows exactly what they're getting.

And remember: the title insurance policy is only issued after closing, once all the requirements are satisfied.

💡Pro Tip:

As a Transaction Coordinator, I always review the title commitment and flag anything unusual for the agent early in the process - giving you time to clear the path to a smooth closing.

✅ Bottom Line

The title commitment is more than just paperwork. It's a promise (or commitment) - and a checklist. Knowing what tolook for (and having someone who does) helps protect everyone involved and keeps your transaction moving forward.