The Title Commitment – How to read it

Austin Luxury Group|February 28, 2018
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When purchasing a property in Texas Buyers will typically want the protection of a title policy. Call Gary and Michelle Dolch at Austin Luxury Group for more information regarding Title Commitments and Title Policies

Commitment is a commitment to issue title insurance and is broken down into four parts or schedules as follows:

● Schedule A reflects the type of transaction we anticipate ensuring, as well as the current owner of the property and legal description. This information should match the information provided in the sales contract.

●Schedule B sets out the exclusions and exceptions to coverage. This is the schedule that will address where other persons or entities could have an interest or the right to use the property or restrict the use of the property. You will find Schedule B Restriction Documents included with this commitment for your review. This schedule contains hyperlinks with Adobe PDFs of your Schedule B exception documents. Please click on the blue hyperlink(s), within the document, to view these documents. If you require hard copies of the documents, please notify us immediately. If we do not receive a response within 48 hours we will assume you have reviewed and accepted the delivery of these documents via the hyperlinks contained within the Title Commitment.

●Schedule C sets out the matters affecting title which must be resolved prior to closing. Seller, this section includes all of the requirements that must be satisfied before the transaction can be funded.

This Schedule also includes information regarding the Area and Boundary coverage and T-19.1 coverage. The Owners Title Policy will automatically include Area and Boundary coverage AND Restrictions, Encroachment, Minerals coverage (T-19.1 Endorsement) unless declined prior to or at closing. Information describing the coverage is available here. Buyer, if you chose to omit this coverage from your policy, you will need to notify our office in writing prior to closing unless you have already declined this coverage in your contract.

●Schedule D outlines all parties who will receive any part of the premiums paid for the title policy. This includes the Title Agent and the Underwriters. This will also show the amount being paid for the owner’s title policy and loan policy along with any endorsements.