Title Commitment Review Checklist

Title Commitment Review Checklist

A title commitment review is an important step in the real estate transaction process, ensuring that the title to a property is clear of any issues that could affect the buyer's ownership rights. This checklist is a starting point to help you review your title commitment. It's important to note that depending on your specific transaction and location, additional items may be necessary. This is not a substitute for professional legal advice and it's highly recommended to consult with a qualified attorney for a thorough review:

1. Review the Title Commitment Date

  • Ensure the title commitment date is current and reflects the most recent search of the property records.

2. Check the Parties Involved

  • Verify the names of the current property owner and the prospective buyer are correct.
  • Confirm that the legal description of the property matches the property being purchased.

3. Examine the Scheduled Exceptions

Schedule A

  • Confirm the type of estate or interest being conveyed.
  • Review the legal description of the property for accuracy.
  • Verify the property's vesting (current ownership status).

Schedule B-I (Requirements)

  • Identify and address any requirements that must be met before closing, such as paying off existing liens or resolving any discrepancies in the property's legal description.

Schedule B-II (Exceptions)

  • Pay close attention to listed exceptions, including easements, restrictions, and encumbrances that will not be covered by the title insurance policy.
  • Determine the impact of these exceptions on the intended use of the property.

4. Scrutinize Encumbrances and Liens

  • Identify any liens, mortgages, judgments, or unpaid taxes that need to be cleared before or at closing.
  • Look for any easements, restrictions, or covenants that could limit the use of the property.

5. Review Endorsements

  • Check for any endorsements that provide additional coverage over standard policies, ensuring they match the buyer's or lender's requirements.

6. Confirm the Insurance Amount

  • Ensure the amount of title insurance coverage is appropriate for the value of the property and the loan amount, if applicable.

7. Assess the Tax Status

  • Verify the current status of property taxes and assessments to ensure they are paid up to date.

8. Look for Errors or Omissions

  • Review the document for clerical errors or omissions that could affect the validity of the title commitment.

9. Verify Zoning and Use Restrictions

  • Confirm that the property's zoning allows for its intended use, especially if it's crucial to the buyer's purchase decision.

10. Consult with Professionals

  • Consider consulting with a real estate attorney or title professional to review the title commitment, especially if there are complex issues or concerns.

This checklist is intended to guide you through a thorough review of a title commitment, ensuring that you're aware of any potential issues that could affect the property transaction. Addressing these issues promptly can help avoid delays and ensure a smooth closing process. This is just a general checklist, and the specific steps and considerations may vary depending on your unique situation.

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