Title Commitment

In depth

A title commitment, also called a binder or preliminary report, summarizes the title search results and the conditions under which the insurer will issue the final policy. Schedule A lists the property and proposed insured. Schedule B lists requirements (items that must be cleared) and exceptions (items not covered). Misconception: a title commitment is not the title insurance policy; it merely commits the insurer to issue a policy if conditions are met. Practically, FSBO and seller-financed buyers should review the title commitment carefully. Schedule B exceptions reveal easements, deed restrictions, and other surviving encumbrances. Schedule B requirements list payoffs, releases, and signatures needed before closing. Title commitments expire, typically in 60 to 90 days, requiring updates if closing extends.