South Land Title

South Land Title

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Resource Library

Explanation of the Title Commitment

The first time you receive a copy of a title company commitment, you might find it difficult to understand. Actually, the commitment is an easy document to read. Once familiar with the commitment, it becomes a road map to follow to ensure that the property being transferred is in insurable condition. To make your job a little easier, we have enclosed a sample title commitment report with numbered reference points and a reference sheet explaining those numbered points. Please call your area marketing representative or escrow officer if you need further clarification.

SCHEDULE “A”

GF NUMBER (1)

  • An inspection of publicly available records and documents to determine the current ownership and title condition for a property.

DATE (2)

  • This is the date and time to which the records have been examined.

POLICY OR POLICIES (3)

  • This indicates what type of policy is to be issued, who is to be insured and for what amount.

ESTATE OR INTERST (4)

  • Shows what type of interest is presently being held in the land.

VESTING (5)

  • Name of parties appearing to have title to the property according to the public records.

LEGAL DESCRIPTION (6)

  • Full description of the property, must be sufficient to enable the examiner to locate the property in the public records.

SCHEDULE "B"

  • Items 1 through 9 preprinted exceptions to Schedule B, will appear on all commitments.

SCHEDULE "C"

  • The third part of the commitment – Schedule C – tells the Escrow Officer and all other persons who are privy to the information contained therein, exactly what needs to be taken care of or resolved prior to closing and issuing the policies.
  • If the Schedule C items are not resolved to the satisfaction of the title insurer, they may (1) elect not to insure the title at all; or (2) may add these matters to Schedule B as exceptions to coverage. Items 1 through 4 are preprinted items that must be dealt with before a policy can be issued.
  • Items 5 through ____ (can be infinite) are items that must be cleared in order to issue the title policy, and insure the new owner and lender.

SCHEDULE "D"

  • This divulges the directors and officers of the underwriting company. These disclosures are made pursuant to procedural rule P-21, promulgated by the State Board of Insurance.