How it works
The commitment is organized in schedules, and understanding which schedule a matter appears in is the whole skill of reading one. Schedule A states the facts: the proposed insured, the amount, the current owner and the legal description. Schedule B-I lists requirements: what must happen before the policy issues, such as paying off an existing mortgage or obtaining a corporate resolution. Schedule B-II lists exceptions: matters the policy will not insure against.
Schedule B-II is where the risk lives. Every easement, restrictive covenant, encroachment, lease, lien and survey matter that the insurer will not cover appears there. A buyer receives insurance against defects in title, not against the things listed as exceptions, so an exception for a utility easement running through the center of a development site is an uninsured, and potentially fatal, condition.
Reading exceptions requires obtaining the underlying documents, not merely noting that they exist. An exception reads as a recording reference and a date; whether the easement it refers to crosses the parking area or the corner of the lot is only discoverable from the document itself. The standard diligence practice is to order copies of every Schedule B-II exception and read them against the survey.
Survey and title work together and neither substitutes for the other. The commitment reveals what is recorded; the survey reveals what is physically there. An encroaching building, a fence in the wrong place or a driveway crossing a neighbour's land may not appear in any recorded document. Obtaining a current survey and having it reviewed against the title commitment is what converts two partial pictures into one complete one.
How it compares
| Schedule | Contents | What to do with it |
|---|---|---|
| Schedule A | Proposed insured, policy amount, current owner, legal description | Confirm the legal description matches the survey and the contract |
| Schedule B-I | Requirements before the policy issues | Confirm each can be satisfied before closing |
| Schedule B-II | Exceptions the policy will not insure | Order and read every underlying document against the survey |
Common mistakes
- Reading the exception list without obtaining the documents
- An exception is a recording reference. Whether the easement it describes is harmless or fatal is only in the document.
- Relying on title without a current survey
- Encroachments and boundary problems may not appear in any recorded instrument.
- Assuming standard exceptions cannot be removed
- Many can be deleted or insured over, often with an endorsement, if raised during the review period.
- Leaving title review to the end of diligence
- Curing a title defect takes time, and the objection deadline under the purchase agreement is usually early.
Frequently asked questions
- What is a title commitment?
- A title insurer's written undertaking to issue a title insurance policy, stating who currently holds title, what must be satisfied before the policy issues, and which matters the policy will not cover.
- What is Schedule B-II of a title commitment?
- The list of exceptions: easements, restrictive covenants, liens, leases and survey matters that the title policy will not insure against. It is where the substantive risk in a title review is found.
- Do I need a survey if I have a title commitment?
- Yes. The commitment shows what is recorded; a survey shows what is physically present. Encroachments, misplaced fences and driveways crossing adjoining land frequently appear in neither the deed nor any recorded document.