If you’re buying a home or property, you’ve likely heard about title insurance, but before your policy is issued, you’ll receive something called a title commitment. This document may not look exciting at first glance, but it’s one of the most important pieces of the real estate transaction. So, what exactly is a title commitment—and what should you look for when you receive one?
Let’s break it down.
What is a Title Commitment?
A title commitment (also called a title binder or preliminary title report) is a promise by a title insurance company to issue a title insurance policy after closing—if certain conditions are met.
Think of it as a preview of the final title insurance policy. It outlines:
- The current state of the property’s title
- Any legal issues that need to be resolved before closing
- The terms under which the title company will issue coverage
The 4 Main Parts of a Title Commitment
A standard title commitment is divided into three main sections, called “schedules”:
Schedule A – The Basics
This section outlines the who, what, when, and how much:
- Who the buyer and seller are
- The legal description of the property
- The proposed insured amount (typically the purchase price)
- The name of the lender (if applicable)
👉 Tip: Make sure all names and legal descriptions are accurate. Any typos here can delay closing.
Schedule B – Exceptions
This is where you’ll find things that will NOT be covered by your title insurance policy.
Common examples include:
- Utility easements
- HOA restrictions
- Mineral rights owned by someone else
👉 Tip: Carefully read these exceptions. They may affect how you can use the property. For example, an easement might limit where you can build a fence or driveway.
Schedule C – Requirements
This section lists the conditions that must be satisfied before the policy is issued, such as:
- Paying off existing mortgages
- Resolving any liens or judgments
- Correcting errors in prior deeds
- Providing marital status affidavits
👉 Tip: These are the items your title company is actively working to clear before closing. Ask questions if you’re unsure about any of them.
Why the Title Commitment Matters
The title commitment protects you by surfacing hidden risks like unpaid property taxes, unknown heirs, forged signatures, or boundary disputes—before you close. By addressing these issues in advance, you avoid future legal headaches.
Final Thoughts: What Should You Look For?
When reviewing your title commitment, keep an eye out for:
✅ Accuracy – Double-check names, addresses, and legal descriptions
✅ Exceptions – Understand what won’t be covered by your policy
✅ Requirements – Make sure all conditions will be met before closing
✅ Communication – Ask your title agent to explain anything that’s unclear
At Pioneer Abstract & Title Co. of Alamogordo, we’ve been guiding buyers through this process for over 125 years. We believe trust starts with transparency—and that starts with your title commitment.
Have questions? We’re always happy to walk through it with you. After all, peace of mind is part of our promise.
