Escrow Tip: What information is found in the Title Commitment?

What information is found in the Title Commitment?

Upon opening escrow and the completion of the title search, you will receive a Commitment for Title Insurance, and copies of those matters as disclosed in Schedule B Section 2-Exceptions
(NOTE: If you do not receive these documents with the Commitment for Title Insurance, request them from your Escrow Officer).

The Commitment for Title Insurance has three schedules: Schedule A and Schedule B Section 1-Requirements and Schedule B Section 2-Exceptions. Below is a brief description of some of the matters reflected in the referenced schedules.

Schedule A

  • Effective Date of Commitment. (The date through which the records of the County Recorder have been searched.)
  • Proposed Owners Policy to be issued, the amount of coverage (sales price) and the proposed insured (Buyer).
  •  Proposed Loan Policy (if applicable) to be issued, the amount of coverage (loan amount) and the proposed insured (Lender).
  •  Type of Interest to be insured in subject property (In most cases this will be Fee).
  •  Legal Description of the property to be insured.

 

Schedule B Section 1-Requirements

  •  Payment of delinquent real and personal property taxes, if any.
  •  Payment of Homeowners Association transfer fees and charges.
  •  Payoff and recordation of a release of any loans, judgments and/or liens affecting title to the subject property.
  •  Recordation of a release of any previously paid liens that have not yet been released of record.
  •  Recordation of corrective documents as may be determined through the examination of the title.
  •  Request for authority documents of a legal entity that may be involved in the transaction (i.e corporate resolution, LLC operating agreement, trust agreement).
  •  Recordation of document(s) transferring title to buyer. (Deed)
  •  Recordation of lenders security document. (Deed of Trust)

Schedule B Section 2-Exceptions
The matters reflected in this section affect the title to the real property. You will take title “Subject To”  these matters of record (i.e. easements, right of ways, covenants, conditions and restrictions, homeowners association, taxing districts, well agreements, road maintenance agreements).

You should review these documents with your real estate agent and/or legal advisor.

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