The ABCs of Title

What's in a Title Commitment?

The title commitment for title insurance informs those to be insured by a title policy of the condition of the property involved. In addition, it informs the future insurers of any requirements that must be met before a policy will be issued. In most insurances, the seller required by the contract to furnish the commitment to the purchaser. If a loan is part of the transaction, the lender will require a commitment at some time during the process of the loan.

There are four schedules to the title commitment

Schedule A

Actual Facts
  • Sets the effective date of commitment
  • Names the insured, sales price, loan amount, estate, or interest in the land
  • States the names of the person(s) in the title
  • Legal description

Schedule B

Buyer Be Aware
  • Informs the insured of all recorded property restrictions, liens, mineral reservations, easements, and all other appurtenances
  • Guarantees that ad valorem taxes are paid and current
  • Limits liability of issued policy

Schedule C

Clear To Close
  • Informs the insured of requirements before policy issue

Schedule D

  • Discloses all officers of the title company (according to state rules and regulations)
  • Discloses policy(ies) of premiums
  • Discloses beneficiary(ies) of premiums

Who Pays What?

A Guide to Closing Costs


Items for which the seller can generally be expected to pay
  • Real estate commission
  • Tax certificate
  • Escrow fee
  • Document preparation for deed
  • Loan fees required by buyer’s deed
  • Payoff of All loans in Seller’s name
  • Interest accrued to lender being paid off, statement fees, and any prepayment penalties
  • Owner title insurance
  • Termite inspection (according to contract)
  • Termite work (according to contract)
  • Judgements, tax liens, etc. (against the seller)
  • Tax pro-rations (for time owned during tax year)
  • Homeowner’s dues
  • Notary fees
  • Home warranty
  • (Additional fees agreed to per contract)


Items for which the buyer can generally be expected to pay
  • Lender’s title insurance premium
  • Escrow fee
  • Document preparation (if applicable)
  • Notary Fees
  • Recorded charges to all documents in the buyer’s name
  • Termite inspection (according to contract)
  • Homeowner’s association dues (for prorated portion of the year)
  • Homeowners transfer fee
  • All new loan charges (except those required by lender for seller to pay)
  • Interest on new loan
  • Inspection fees (roofing, property inspection, geological)
  • Homeowner’s insurance premium for first year