How to read a title commitment

Get the complete current document

Ask for the full commitment, including the conditions and attached schedules, and confirm whether you have the latest revision. Keep the filename or revision date with your notes. Reviewing one detached page makes it difficult to understand how an item relates to the rest of the document.

If the commitment refers to a recorded instrument you have not seen, request a copy. Write down the specific reference and the question you want answered. This is more useful than forwarding a large file with a general request to explain everything.

Check the proposed transaction details

In the ALTA structure, Schedule A identifies matters such as the proposed insured, proposed insurance amount, estate or interest, current vesting and land description. These are foundational details to check with the issuing professional. ALTA commitment schedules.

Compare the names and property identification with your transaction documents. If a trust, entity, extra parcel or unusual ownership arrangement is involved, raise it immediately. Ask who will explain the legal description and confirm that the intended property is included; a familiar street address is not a substitute for that review.

Find the requirements and their status

Requirements describe steps that must be satisfied for the proposed policy to issue. First American's commitment explanation identifies this section separately from the exceptions. One may concern a document or a financial interest to be addressed.

For each item relevant to your transaction, ask what evidence is needed, who is responsible and whether it has been received. A requirement can remain printed on a document even while work progresses, so ask for the current status rather than guessing from the page alone. Record unresolved questions before the signing appointment.

Understand what the proposed policy leaves out

Exceptions identify matters excluded from the proposed coverage. They can include recorded rights that remain with the property. The important question is how a particular exception affects you, not simply how many exceptions appear. First American's explanation of commitment exceptions.

Imagine a hypothetical buyer relying on a shared driveway. If the relevant agreement is listed, request the instrument and ask an attorney to explain the rights and obligations. Ask the title professional how it is treated in the proposed coverage. Our easement guide helps organize the practical questions.

Read the conditions with the schedules

The commitment contains conditions and a specified period for satisfying requirements. Under the ALTA form, changes must be in writing. Do not assume an informal conversation changes the commitment or that deleting an exception creates unlimited coverage. Ask for the issuer's written explanation of an agreed change. ALTA commitment conditions.

Also distinguish the commitment date from the planned closing date. If timing changes, ask whether an update is needed. You are looking for the document that accurately describes the offer being made for the transaction as it now stands.

Leave the review with a short action list

Organize your questions around the decision you need to make. A useful review ends with specific follow-up, not a vague assurance that the document is standard.

• Are the insured names and land details correct?
• Which requirements remain outstanding and who is handling them?
• Which exceptions affect my intended use?
• What written revisions are expected before policy issuance?
• When should I receive and review the final policy?

Connect the document to your coverage decision

Read owner's versus lender's coverage if the commitment proposes more than one policy. Then use Balkun's title insurance page to request help identifying the documents and questions relevant to your closing. Keep the commitment and the eventual issued policy as separate records.