When you buy a home, a title commitment is one of the key documents you may receive before closing. In simple terms, it is the title insurance company’s promise to issue a title insurance policy once certain conditions are met.
Think of it as a roadmap for the property’s title. It shows the basic details of the transaction, identifies items that must be resolved before closing, and explains certain matters that may not be covered by the final title insurance policy.
What Does a Title Commitment Include?
A typical title commitment is organized into several sections, often called schedules:
- Schedule A: Basic details, such as the current owner, proposed buyer and lender, property’s legal description, and proposed insurance amount.
- Schedule B-I: Requirements that must be completed before the policy can be issued—such as paying off an existing mortgage or lien, resolving a judgment, or recording the new deed.
- Schedule B-II: Exceptions to coverage. These may include easements, deed restrictions, rights-of-way, or other items that affect the property and may remain after closing.
Why Should Buyers Review It?
The title commitment helps you understand the status of the title before you take ownership. It gives the title company, buyer, lender, seller, and attorneys an opportunity to identify and address issues before the closing takes place.
Review the names, property description, requirements, and listed exceptions carefully. If something is unclear, ask your real estate attorney or title professional to explain it. A title commitment is not the final title insurance policy—but it is an important preview of the policy’s terms and the work required to reach a successful closing.
Have Questions Before Closing?
Evergreen Land Title Services is here to help you understand the title and closing process with clarity and confidence. Contact us today to discuss your upcoming New Jersey real estate transaction.