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.

Title Commitment Review Checklist