How to Read a Texas Title Commitment
A few days after you go under contract, the title company sends you a title commitment. It is a long document full of legal language, and many buyers skim it or ignore it. That is a mistake, because it tells you exactly what the title company will insure and what stands in the way of a clean closing.
What Is a Title Commitment?
A title commitment is the title company's written promise to issue a title insurance policy at closing, provided certain conditions are met. It is based on a search of the public records for the property, and it lists who the title company believes owns the property, what is recorded against it, and what must happen before the policy can be issued.
Schedule A: The Basics
Schedule A states the policy amount, the type of policy, the current owner of record, and the legal description of the property. Check the names and the legal description carefully. A misspelled name or a wrong lot number is much easier to fix before closing than after.
Schedule B: Exceptions to Coverage
Schedule B lists matters the policy will not cover. Some are standard, such as recorded easements for utilities, restrictive covenants and subdivision restrictions, and the standard survey exception. Others deserve attention: a recorded easement running through the middle of the lot, a mineral reservation, or an old lien that appears unreleased. Ask your escrow officer to explain each item and whether it affects how you plan to use the property.
Schedule C: What Must Happen Before Closing
Schedule C lists the requirements the title company needs satisfied, such as payoff of the seller's existing mortgage, release of liens, proof of authority for entities or trusts, and recording of specific documents. Items here are the most common reason a closing is delayed, so ask for status updates and respond quickly when the title company needs something from you.
Questions to Ask Your Escrow Officer
Ask whether any exception can be removed or amended, whether a survey will change the coverage, whether any lien or judgment shows against the seller, and whether anything must be recorded before funding. If a legal issue comes up, such as a boundary dispute or an unclear ownership history, talk to a real estate attorney. Our team handles every step from the title search through funding and recording, and we are happy to walk you through your commitment line by line.