What Is a Title Commitment in Real Estate?

A title commitment (sometimes called a title binder) is the title company’s written promise to issue title insurance after listed requirements are met. It shows what must be cleared before closing and what the final policy will and won’t cover.

✅ How a Title Commitment Works

  • Issued after a title search: the title company reviews public records for liens, judgments, taxes, and ownership defects.
  • Lists what to clear: payoff demands, releases, HOA/municipal letters, probate or marital docs—handled during escrow.
  • Becomes your policy: once requirements are satisfied and the deed is recorded, the final owner’s/lender’s title insurance is issued.

Costs and premiums appear on the settlement statement (HUD/CD).

What do the Schedules mean?
  • Schedule A: proposed insureds, policy amounts, vested owner, and legal description.
  • Schedule B-1 (Requirements): items to complete (payoffs, releases, recorded docs) before issuing the policy.
  • Schedule B-2 (Exceptions): items the policy won’t cover (CC&Rs, easements, survey matters) unless removed by documentation/endorsements.

💡 Why the Title Commitment Matters

  • For buyers: transparency about liens, easements, and restrictions before you close.
  • For sellers: a checklist to get “clear to close” (payoffs, releases, HOA estoppels).
  • For FSBO: keeps timelines tight—coordinate documents through escrow and reflect results on the settlement statement.

📍 Title Commitment Tips for FSBO Sellers

  • Customary payment: see who pays for title insurance — varies by state/county.
  • Common requirements: mortgage payoff, judgment releases, HOA dues/tax proration, entity or probate documents.
  • Survey/encroachments: some exceptions can be removed with a current survey or endorsements—ask your title company.
  • Contract alignment: match deadlines in your purchase agreement to the title/escrow timeline.

🧩 Quick Myths About Title Commitments

  • “The commitment is the policy.” ❌ It’s a promise to issue a policy after requirements are satisfied.
  • “It covers future damage.” ❌ Title insurance covers past title defects, not property condition.
  • “Exceptions can’t change.” ❌ Some exceptions can be cleared/insured over with documents or endorsements.