A commitment for title insurance — also called a title commitment, title binder, or preliminary title report — is a document issued by the title company that sets out the specific terms and conditions under which it will issue a title insurance policy for a particular property and transaction. It is the most important document in the pre-closing phase because it reveals everything the title company found during its title search and tells all parties exactly what needs to happen before the policy will be issued.
The commitment is organized into three schedules. Schedule A contains the basic transaction information: the effective date of the search, the proposed insured parties (buyer and/or lender), the policy amounts, the type of estate being insured (usually fee simple), the current owner of record, and the property's legal description. Everyone should verify that Schedule A is accurate — wrong names or legal descriptions can cause significant problems at closing.
Schedule B-I lists the requirements that must be satisfied before the title company will issue the policy. Common requirements include: payment of the title insurance premium, recording the new deed and mortgage, payoff and release of the seller's existing mortgage, payment of outstanding tax liens or judgments, obtaining specific affidavits, and any other actions needed to establish clear title. Each requirement must be checked off before the policy is issued.
Schedule B-II lists the exceptions — matters that will NOT be covered by the title insurance policy even after it is issued. Standard exceptions include rights of parties in possession (tenants), easements or claims not shown in public records, encroachments that a survey would reveal, unpatented mining claims, and special taxes or assessments. Property-specific exceptions may include particular easements, covenants, deed restrictions, and other recorded encumbrances. Buyers should review Schedule B-II carefully to understand what is NOT covered.
At Beycome Title, we issue commitments promptly — typically within 3 to 5 business days of receiving the contract — and walk clients through every item in plain language. Early review ensures maximum time to address any issues. If you have questions about a requirement or exception, our title team is here to explain. Get your free title quote and start the process.