Title Commitments

Title Commitment is a title report prepared using title search documents or abstract documents covering a particular estate or interest in the real property subject to the stated exceptions.

This report is made solely to facilitate issuance of title policy and the insurer assumes no liability for errors on the report. This allows buyer and seller to agree to what items must be removed prior to closing and what items can be left on the policy.

Preliminary Report contains 3 Schedules (i.e., A, BI & BII) and other general terms and conditions of Title Insurance Company. Each Schedule has a set of information related to the property.

Schedule A

Vesting

Vesting means a right or title, as to present or future possession of an estate, that can be conveyed to another.

Estate or Interest Estate means the level of ownership possessed by the owner of the property.

Legal Description It is a set of words recognized by government and law to describe the exact boundaries of a particular land or property.

Schedule BI (Requirements):

This Schedule contains below requirements which are considered as liens or obligations on the real property. All the matters listed in this section must cleared prior to closing to ensure unwanted claims that could arise and protect either parties involved in the transaction.

1. Mortgages/Deed of Trust

2. Judgments/Liens

3. Bankruptcies

4. Taxes

5. Title Defects

6. Foreclosure Proceedings

7. Divorce Proceedings

8. Estate Proceedings

9. Specific Requirements such as LLC, Trust etc...

Schedule BII (Exceptions):

This Schedule contains below exceptions but they are not considered as liens or obligations on the real property.

Easements

CCR

Other Leases and general agreements

Ordinances

Resolutions

Plat Information

In addition to these, the title commitment may include Commitment Jacket, Privacy Policy as part of the package based on the requirements.