Somewhere before closing you will receive a title commitment, and it can look like dense legal boilerplate. It is actually one of the more useful documents in your purchase. Let me show you how to read it and what to look for.
Written by Adam L. Engel, Esq., Principal and real estate attorney at Prime Title & Escrow
After I search the title to your future home, the results are summarized in a title commitment. It is the insurer’s promise to issue your policy, on certain conditions, and it tells you a great deal about the state of the title. Knowing how it is organized makes it far less intimidating.
A title commitment sets out the results of the title search and the terms on which the title insurer will issue your policy. It states what must be done to deliver clear title, what your policy will cover, and what it will not. Think of it as a status report on the title plus a preview of your coverage.
How it is organized
A commitment is usually divided into schedules. One schedule identifies the basics: the type and amount of the policy and who is to be insured. Another lists the requirements that must be satisfied before the policy can issue. A third lists the exceptions, the matters the policy will not cover. Once you know these three parts, the document becomes readable rather than mysterious.
The requirements
Requirements are the to-do items that must be completed before you get clear title and your policy is issued. Common examples include paying off and releasing the seller’s existing mortgage, clearing a lien or judgment against the seller, resolving an estate matter, or obtaining a necessary signature or power of attorney. Satisfying these is my job, and it is much of what I do in the days before your closing, as I describe in what a title and escrow company does.
The exceptions
Exceptions are matters the policy will not insure against. Many are routine, such as recorded easements that let a utility cross the property, or covenants and restrictions that run with the land. They are common and often harmless, but they are worth reviewing because they can affect how you use the property. If something in the exceptions looks like it could matter to your plans, that is exactly the kind of thing to raise with me.
Reading your commitment tells you three things that are genuinely useful: what is being cleared on your behalf, what your owner’s policy will protect, and what falls outside that protection. For more on the coverage side, see what title insurance covers. I review the commitment with you and flag anything that needs attention, so you go into closing understanding the title rather than trusting blindly.
What to do when you get it
When your commitment arrives, skim the requirements to see what is being handled, then read the exceptions to make sure nothing surprises you. You do not need to decode every line. You need to spot anything that affects your use of the property or your expectations, and bring it to me. That is the difference between signing blind and signing informed.
One more thing worth knowing: a commitment is a snapshot as of the date of the search, so if time passes before you close, I update the search to catch anything new, such as a lien recorded in the meantime. That is part of why the work continues right up to closing day rather than ending when the commitment is issued. It is also why a question you have about an exception is best raised early, while there is time to resolve it without delaying your closing.
A title commitment is not a hurdle, it is a window into the property’s legal standing before you own it. Whether your purchase is in Virginia or West Virginia, I will make sure you understand what it says and that every requirement is met before you sit down to close.
Send it over and I will walk you through the requirements and exceptions so you know exactly where your title stands before closing.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
What is a title commitment?
A title commitment is the document that sets out the results of the title search and the terms on which the title insurer will issue your policy. It lists what you must do to get clear title, what the policy will cover, and what it will not cover.
What are the parts of a title commitment?
It generally has schedules. One identifies the policy, amount, and who is to be insured. One lists the requirements that must be met before closing, such as paying off the seller’s loan. One lists the exceptions, meaning matters the policy will not cover, like recorded easements.
What are requirements on a title commitment?
Requirements are the things that must be done before the policy can be issued, such as releasing the seller’s existing mortgage, clearing a lien or judgment, or obtaining a needed signature. My job is to satisfy these before your closing.
What are exceptions on a title commitment?
Exceptions are matters the title policy will not insure against, such as recorded easements, covenants, or restrictions. It is worth reviewing them, because they can affect how you use the property, even though they are common and often harmless.
Should I read my title commitment?
Yes. It tells you what is being cleared, what your policy covers, and what it excludes. I review it with you and explain anything that needs attention, so you understand the state of the title before you commit to closing.
This article is general information about title commitments in Virginia and West Virginia. It is not legal advice for your specific transaction, and your commitment’s terms depend on the property and the title search. Please review your commitment and confirm the details with me directly.