Today I’ll go over how to understand your title commitment. The document is broken down into four parts: A, B, C, and D.

Section A concerns the financing and who the parties are to the contract. This section will clearly show that a title policy can be issued.

Section B is about exceptions and your exception documents. This is where all easements are going to be located as well as any exceptions the title company will take to the title commitment or to the survey. If any addendums have been issued towards that property at any point, that will also be in section B.

“Your title commitment is broken down into four parts: A, B, C, and D.”

Section C is about the requirements that need to be cleared so that the title company can issue a clear title. You’ll see if there are any liens against the property. You need to make sure those get cleared up if there are any. You will also see if there are any judgments against the seller. If there are, those are going to be on the title commitment. Keep in mind, when you have a very common name, you may see several judgments against that name. The title company will talk with the seller to verify their social security number and clear up those liens or have an affidavit for the seller to sign at closing.

Section D shows all of the disclosures, names, business arrangements, and business affiliations that belong to that particular title company.

If you have any questions about today’s topic, please feel free to contact me via phone or email. I’d love to hear from you and answer any questions you have.