Schedule B, line by line
The exceptions in a title commitment decide what your policy won't cover. How to read them, and which ones to question before closing.
A title commitment arrives a week or two after the contract is signed, and most buyers never open it. It's the insurer's promise to issue a policy, and its list of what that policy will leave out.
Schedule A: who and what
The first schedule names the proposed owner, the lender, the policy amounts and the legal description. Check the names against the contract and the legal description against the plat. A wrong lot number here is easier to fix now than after recording.
Schedule B, part one: what must happen first
These are the requirements: the seller's loan paid off, a release recorded, a deed signed by everyone on title. If one can't be met, the policy won't issue. Most are routine. Look for anything with a name you don't recognize.
Schedule B, part two: what won't be covered
The exceptions are recorded documents and conditions the policy excludes: easements, the subdivision's CC&Rs, mineral reservations. Each one points to a document number. Ask for copies of the ones that touch the land you'll use.
- An easement across the back yard
- A reservation of water or mineral rights
- An unreleased deed of trust from a past loan
- An exception for 'matters a survey would show'
The last one is worth a conversation: if no survey is ordered, the policy won't cover a fence or a building over the line.