How to read a title commitment and object to exceptions

A title commitment is the title company's promise to issue title insurance once listed requirements are met. It names the insured and the amount, lists what must happen before closing (Schedule B-I), and lists the exceptions the policy won't cover (Schedule B-II). The buyer objects in writing to unacceptable exceptions before the contract's title objection deadline.

More on this topic: Contract to close: process and checklists, every guide in one place.

Title review is easy to overlook because it's driven by a document, not a date. The objection period usually starts when the commitment (and sometimes the exception documents and survey) arrives, so nobody knows the deadline until the file is already moving. Here's how to read the commitment and run the objection process, and how Closingbird's deadline tracking starts the clock when the commitment arrives.

The parts of a title commitment

Most commitments in the US follow the American Land Title Association (ALTA) commitment form, though layouts differ by state and underwriter:

Some states and underwriters label the schedules differently (for example, putting requirements in Schedule C). Read the headings on the commitment in front of you.

Exceptions worth a closer look

• Easements that run under the spot where the buyer wants a pool, garage or fence.
• Restrictive covenants that limit rentals, outbuildings, home businesses or fencing.
• Encroachments or survey matters: a neighbour's fence over the line, or a driveway shared without a recorded agreement.
• Liens and judgments against the seller. Many contracts make the seller pay off monetary liens at closing whether or not the buyer objects, but list them anyway.
• Access: does the property have recorded legal access to a public road?
• Mineral, oil or water rights reserved to someone else.
• Standard or general exceptions, which an owner's policy may or may not remove with a survey or extended coverage. Ask the title company.

Ask the title company for copies of the recorded documents behind each exception. An exception that just says "Easement recorded in Book 1234, Page 56" tells you nothing until someone reads the document.

The title objection process

1. Record when the commitment arrived, and when the exception documents and survey arrived if the contract counts from those.
2. Calculate the title objection deadline from the contract. On many forms, matters not objected to by then are treated as accepted.
3. The buyer, usually with the agent and sometimes an attorney, reviews Schedule A, the requirements and each exception.
4. The buyer delivers written objections to specific items before the deadline. Blanket objections to "all exceptions" are rarely effective.
5. The seller has a period to cure or refuse. Curing might mean getting a release, an endorsement or a corrected document.
6. If the seller can't or won't cure, the contract usually gives the buyer a choice: accept the exception or terminate within a set time.
7. Watch for updated commitments. A new exception added later may restart the review for that item on some forms.

The number of days for each step differs widely between state forms and negotiated contracts. Check your state's contract. If a step is missed, see what happens if you miss a contingency deadline.

A title checklist for the file

• Order title as soon as the contract is accepted, if your side is responsible.
• Note the date the commitment, exception documents and survey are received.
• Add the title objection deadline, and the seller cure and buyer response deadlines.
• Send the commitment and documents to the buyer and their agent with the deadline in the email.
• Track each Schedule B-I requirement to an owner: payoff statements, releases, entity or estate paperwork.
• Ask for an updated commitment or title bring-down close to closing.
• Confirm the requirements are cleared before the lender and title company can schedule closing.

Closingbird's deadline tracking handles event-based deadlines like title review: when you record the date the commitment arrived, the objection deadline is counted from it. Document requests chase payoff statements and releases with automatic reminders. Our overview of contract deadlines explains event-based dates in more detail.

This guide is general information, not legal advice. Title practice and contract forms vary by state; check your state's contract and ask the title company or a real estate attorney about specific exceptions.

Frequently asked questions

What is Schedule B on a title commitment?

Schedule B usually has two parts. Part I lists the requirements to be met before the policy issues, such as payoffs and signed documents. Part II lists the exceptions the policy won't cover, such as easements and covenants.

How long does the buyer have to object to title?

Whatever the contract says. The period is often counted from receipt of the commitment and related documents rather than from acceptance, and it varies by state form and negotiation.

What happens if the seller can't fix a title objection?

Usually the buyer chooses between accepting the exception and terminating within a set period, often with the earnest money returned. The exact options are in the contract's title clause.

Is a title commitment the same as a title policy?

No. The commitment is a promise to insure on stated terms if the requirements are met. The policy is issued after closing and recording.