Real estate
Title commitment: how to read it
Updated June 23, 2026
A title commitment is a title insurance company's written promise to issue a title insurance policy at closing, on the terms it describes, once certain requirements are met. Think of it as a preview of the policy. It shows who owns the property now, what the policy won't cover, and what has to happen before closing. In Texas residential transactions, the commitment uses a form promulgated by the Texas Department of Insurance (TDI).
Where it comes from
After the title company receives the contract, it searches the public records for the property. Under the standard Texas Real Estate Commission (TREC) resale contract, the seller must furnish the commitment within 20 days after the title company receives the contract, along with copies of the documents listed as exceptions. The buyer then has a limited time to review it and object.
Schedule A: the basics
Schedule A summarizes the proposed policy:
- Effective date: the date through which the records were searched. Anything recorded later isn't reflected.
- Proposed policies and amounts: usually an owner's policy for the sales price and, if there's a loan, a lender's policy for the loan amount.
- Proposed insured: check that the buyer's name is spelled correctly.
- Current owner: the person or entity that holds title now. It should match the seller in your contract. If it doesn't, for example because an owner has died or divorced, that needs attention right away.
- Legal description: usually a lot, block, and subdivision. It should match the contract and the survey.
Schedule B: exceptions
Schedule B lists matters the policy won't insure against. Some are standard printed exceptions; others are specific to the property. Common examples include:
- Subdivision restrictions and HOA covenants
- Utility easements and building setback lines shown on the plat
- Mineral interests owned or reserved by others, which are common in Texas
- Rights of tenants or other parties in possession
- Property taxes for the current year that aren't yet due
One standard exception covers discrepancies, conflicts, shortages in area or boundary lines, encroachments, and overlapping improvements. With an acceptable survey and payment of an additional premium set by TDI, this exception can usually be amended to cover only "shortages in area," which gives the owner broader protection. The TREC contract states whether the amendment will be requested and who pays for it.
Read every document listed in Schedule B, not just the one-line summary. A restriction or easement can limit fences, pools, additions, or how you use the property.
Schedule C: requirements
Schedule C lists what must happen before the title company will issue the policy. Typical requirements include:
- Paying off and releasing the seller's mortgage or home equity loan
- Releasing judgment liens, tax liens, contractor's liens, or unpaid HOA assessments
- A deed signed by every owner and, for a homestead, by the owner's spouse
- Probate or heirship records if an owner has died, or authority documents if the seller is a company or trust
- Affidavits from the seller about debts, liens, and parties in possession
The title company and seller usually handle Schedule C items before closing. Unusual requirements, such as a missing probate or an old unreleased lien, can delay closing, so they're worth raising early.
Schedule D: disclosures
Schedule D identifies the title insurance agent and underwriter, discloses certain ownership information about them, and shows how the title insurance premium is divided between them.
Red flags worth asking about
- The current owner in Schedule A isn't your seller.
- The legal description doesn't match the contract or survey.
- Liens appear in Schedule C that no one has mentioned.
- An easement runs where you plan to build or add on.
- A restriction appears to conflict with how you plan to use the property.
- The commitment lists parties in possession when the home is supposed to be vacant.
Objecting before the deadline
Under the TREC resale contract, the buyer may object in writing, within the time the contract allows, to title matters the contract doesn't permit. The seller then has a limited time to cure. If the seller doesn't cure a proper objection, the buyer may terminate and receive the earnest money back. A buyer who doesn't object in time generally waives the objection, although Schedule C requirements still have to be satisfied.
How we help
We review title commitments within 3 business days of receiving the commitment and survey, and we prepare the objection letter if one is needed. A title commitment review costs $400 on its own and is included in our buyer closing package.
This is general information, not legal advice.