Explanation of Title Commitment
Here is an explanation of Title Commitment to help you understand the contents of the title commitment report you will receive from the title company.
This is the information submitted to the Title Department by the escrow officer. It contains the basic information given to them typically by the Realtor (or sometimes by the Buyer), such as the legal description of the property, sales price, loan amount, lender, name and marital status of the Buyer and Seller.
Schedule B lists all items tied to the subject property. These include Covenants, Conditions and Restrictions (CC&Rs), easements, homeowners association by-laws, leases, and other items which will remain of record and transfer with the property. They are referred to as "exceptions" because the Buyer will receive a clear title, "except" the Buyer's rights will be subject to conditions in the CC&Rs, recorded easements, etc.
The requirements section shows all items that the title company needs to delete and/or record in order to provide a clear title to the property. Items that need to be addressed include:
- Current property tax status
- Any assessments that are owed, such as those for a homeowner's association
- Any encumbrances (or liens) on the property
This is information given to the title company by the County Recorder's office, which specifies the proper size, margins and print type to be used on the documents to be recorded.