Title Tuesday: Anatomy of a Title Commitment

At Advocus Title, we understand how important it is to you and your borrowers to receive a Title Clear to Close (TCTC) as quickly as possible in order to proceed with a seamless closing. Our team uses the title commitment as a road map to cure any defects in title during the clearance process. We have detailed the basics of the title commitment below to help ensure the clearance process is as fast and smooth as possible.

What is a title commitment?

The title commitment (also referred to as a title report or binder) is the document a title company creates as a promise to issue a title insurance policy.

Parts of a title commitment

In most states, there are three basic parts of a title commitment:

• Schedule A, which usually contains the basic information about the property, the effective date of the policy, the type of policy to be issued, and who the policy will insure.
• Schedule B-I, which lists the requirements for the issuance of the title insurance policy. Some common requirements are payment of taxes, recording the documents securing the new loan, and proof of identity.
• Schedule B-II, which lists all of the exceptions that the title policy will not cover; therefore, the policy that is issued will not protect the lender or homeowner from these things. Some common types of exceptions include public utility easements and right of ways. It’s possible to work with us to insure over some items with an endorsement or eliminate the exception by obtaining a release, affidavit, quitclaim deed, or other official document.

For any questions on how we prepare title commitments or work to clear title at Advocus Title, feel free to reach out to our to the Advocus Title Customer Support team via form, email, or phone.