What is the Title Insurance Commitment?

The title insurance commitment is an insurance policy that is purchased by the seller that insures the property against loss due to title defects, liens or other matters related to title.

When reviewing your title commitment it is important to examine Schedule B, Section 2, Exceptions. This is the section that lists the items that will not be insured against.

More often than not, this section contains utility easements, recorded neighborhood plat maps etc. that are normal and don’t pose a liability for the buyer. However, there are transactions where serious exceptions are present that need to be cleared prior to closing on the property. Your real estate broker should offer guidance on involving a lawyer or title expert when issues with the title commitment arise.