|
A Brief
Outline of the Title
Commitment
(Click Here to Print PDF)
Schedule A:
This portion of the title commitment contains basic information about
the proposed transaction:
• Proposed Policy
Amount and Insured (Owner Policy)
• Proposed Policy
Amount and Insured (Mortgagee Policy)
• Current record
title owner (This is a problem if it does not match
the seller on the contract.)
• Legal Description (The title search is done by legal description
and not by address.)
Schedule B:
This portion contains a list of preprinted exceptions that the title
policy will not cover. Besides these preprinted exceptions, which
include restrictive covenants of record, you will most often find such
items as Easements, Right-of-Way, Mineral Exceptions, etc.
Schedule C:
This is without a doubt the most important part of the
title commitment. It contains the requirements that must be met in
order for the title policy to be issued. This portion will list
existing liens and encumbrances that must be paid at closing. It will
also list any title defects; items such as federal or state tax liens,
abstract of judgment, pending lawsuits, etc. It will also show any
matters that adversely affect the title, or matters needed to restore
the title. Marital status questions, bankruptcies, probate matters,
homestead questions, and other items may show up here. Be on the lookout for
requirements in Schedule C!
Please remember, any problems or defects must
be corrected by the seller of the property. Gracy Title
Company will be more than happy to assist in this endeavor, but it is
the primary responsibility of the seller.
Schedule D:
This is the disclosure portion of the title commitment. Ownership of
the title company and title premium disbursement are
listed here.
PURPOSE:
A commitment for title Insurance is a promulgated
form that offers to issue a Title Policy; a statement of the terms and
conditions on which the title company is willing to issue its policy.
WHY:
Title Companies issue title commitments to comply with Paragraph 6
(Title Policy and Survey) of the TAR promulgated contract forms. The
contract states that a title commitment will be delivered to a buyer
or seller within 20 days after the title company receives a copy of
the contract. Copies of the restrictions and documents evidencing
exceptions in the title commitment are also delivered to the buyer.
|