Title Commitment: How Investors Read Schedules A, B-I, B-II

A title commitment is a title insurer’s written offer to issue a title policy on a specific property, as long as the listed requirements are met and subject to the listed exceptions. For a wholesaler, it is the document that tells you, weeks before closing, whether your seller can actually deliver clean title and what has to happen before your end buyer gets insured.

Most guides to this document are written by title companies for retail homebuyers. This one reads it the way an investor has to: line by line, with an eye on assignments, double closings, and the items that kill wholesale deals.

What a title commitment promises (and what it refuses to promise)

The standard national form is the American Land Title Association (ALTA) Commitment for Title Insurance. The current version is dated 2021 (shown on the form as “2021 v. 01.00 (07-01-2021)”), part of the 2021 forms collection the ALTA Board of Governors approved for adoption on July 1, 2021. Some states and underwriters use variations, so wording can differ.

Four parts matter most to an investor:

It is an offer, not a report. The form states it is not an abstract of title, legal opinion, or representation of the status of title. California’s Insurance Code says preliminary reports and commitments are offers to issue a title policy subject to the stated exceptions, not a representation of the condition of title.
It expires. If all the Schedule B, Part I requirements are not met within the period stated in the commitment, it terminates and the insurer’s obligation ends. The blank ALTA form leaves the period open; the copy filed with the Florida Office of Insurance Regulation uses 180 days after the Commitment Date. Read the number on yours.
Only the named Proposed Insured can claim under it. Commitment Condition 6.a says only a Proposed Insured identified in Schedule A may make a claim. That matters when you assign.
The insurer can amend it at any time (Condition 4), and its liability for an amendment is limited to good-faith expenses you incurred, capped at the lesser of those expenses or the proposed amount of insurance. If you had knowledge of a matter and did not notify the company in writing, it is not liable for that amendment (Condition 5.b).

The Texas Department of Insurance puts it plainly in its title insurance FAQ: the commitment comes before closing, the policy after, and listed items can become exceptions under Schedule B of your policy. Many of those requirements exist because of a gap in the chain of title, such as an unprobated estate or a missing deed.

Schedule A: five lines that must match your contract exactly

Schedule A on the 2021 ALTA form has five items. Check each against your purchase agreement and assignment first.

Commitment Date. The date through which the public records were searched. Anything recorded later is not reflected, so ask for an update if it is getting old.
Policy or policies to be issued. Up to three policies, each with a Proposed Insured, a Proposed Amount of Insurance, and the estate to be insured.
The estate or interest in the land at the Commitment Date.
Vesting. Who title is vested in right now. If it does not match who signed your contract, find out why: a deceased parent, an ex-spouse, a trust, or a forgotten LLC.
Legal description. Compare it to the last deed of record and your contract.

A vesting mismatch is the most useful red flag on the document, because it tells you whether the person you negotiated with can sign the deed.

Schedule B-I requirements: your closing to-do list

Schedule B, Part I lists everything that must happen before the insurer will issue the policy. The 2021 ALTA form prints four standard requirements: the Proposed Insured must notify the company in writing of any party not named in the commitment who will obtain an interest in the land or make a loan on it; pay the agreed amount for the estate; pay the premiums and charges; and record properly authorized, executed, and delivered conveyance documents. Then come file-specific requirements, where deals live or die:

Payoff and release of each mortgage or deed of trust. The title company orders a payoff letter from each lender. See our guide to the mortgage payoff statement.
Pay and release judgments, or an affidavit that the seller is not the debtor. See judgment lien.
Release of mechanic’s liens, or lien waivers if work was recent. See mechanic’s lien.
Estate documents when an owner has died: death certificate, probate letters, or affidavits of heirship, depending on state law and underwriter.
Entity authority documents when an entity buys or sells. An Old Republic Title list of typical Virginia commitment requirements asks for the articles of organization, a certificate of good standing, the operating agreement or a certification that none exists, and member approval.
Owner’s or seller’s affidavit covering possession, recent improvements, and unrecorded matters.
Delinquent taxes, HOA or condo association dues, and municipal liens.

Schedule B-II exceptions: what the policy will not cover

Schedule B, Part II lists the matters the policy will except from coverage “unless cleared to the satisfaction of the Company,” in the form’s words. There are two kinds.

Standard (general) exceptions

These appear on nearly every commitment: parties in possession, matters an accurate survey would reveal (encroachments, boundary disputes), unrecorded easements, unrecorded mechanic’s liens, and taxes or special assessments not yet shown in public records. The 2021 ALTA form also offers an optional exception for anything that first appears in the public records between the Commitment Date and the date the requirements are met, sometimes called the gap.

Specific (special) exceptions

These come from the search of this property: recorded easements by book and page, restrictive covenants and HOA declarations, plat notes, mineral reservations, recorded leases, and current-year taxes not yet due. Read every recorded document listed. A rear utility easement is routine; an access easement across a buildable lot can wreck a builder’s exit.

How assignments and double closings show up on the commitment

Assignment of contract

If your contract names “Your LLC and/or assigns,” the first commitment will usually show your entity as Proposed Insured, since that is who is on the contract. Once you assign, two parts of the form matter. Requirement 1 obliges the Proposed Insured to notify the company in writing of any party not referred to in the commitment who will obtain an interest in the land, and Condition 6.a says only a Proposed Insured named in Schedule A can claim under the commitment. So send the signed assignment to your title company immediately and ask for an amended commitment that names the end buyer (and the end buyer’s lender, if any) in Schedule A. Expect new requirements for the buyer, such as LLC authority documents, and confirm how your fee will appear on the settlement statement.

Double close

In a double close there are two sales: seller to you (A to B), then you to the end buyer (B to C). Expect the title work to reflect both. The B-to-C commitment cannot show you as vested owner yet, so it will typically carry a requirement to record the A-to-B deed first. Ask your title company early whether its underwriter will insure both legs the same day and what it needs, because appetite for same-day resales varies.

Commitment vs. preliminary report vs. title opinion: state differences

Document	Where you see it	What it is
ALTA title commitment	Most states using title insurance	An offer to insure, with Schedule A, B-I requirements and B-II exceptions
Preliminary report (“prelim”)	California	Treated by Cal. Ins. Code 12340.11 as an offer to issue a policy subject to stated exceptions, not a representation of title
State-promulgated commitment	Texas	A conditional offer on Texas forms; premium rates are set by the Texas Department of Insurance, so every company charges the same premium for a policy
Abstract plus attorney title opinion, with optional state title guaranty	Iowa	Under Iowa Code 16.91, the Iowa Finance Authority’s title guaranty division issues guaranties based on an updated abstract and a participating attorney’s title opinion

Before you contract in a new state, ask a local closer what the title evidence is called, who issues it, and how long it usually takes. Turnaround depends on county records, workload, and how messy the chain is, so trust the local number over any national average.

A red-flag review of a hypothetical title commitment

Here is a fully hypothetical file. You have a contract at $118,000 on a vacant three-bedroom at 418 Juniper Avenue (a made-up address), signed by Dana Reyes. You assigned it to a rehabber’s LLC for $131,000, a hypothetical $13,000 assignment fee. The commitment arrives eleven days later.

Schedule A (hypothetical): Commitment Date 21 days ago. Proposed Insured on the owner’s policy: your LLC, amount $118,000. Vesting: “Dana Reyes and Thomas Reyes, husband and wife.” Legal description: Lot 14, Block 3 of the recorded subdivision.

Two problems already: the Proposed Insured is still you, and two people hold title while only one signed.

Schedule B-I requirement (hypothetical)	What it means	Deal impact
Payoff and release of deed of trust recorded 2016, original amount $96,000	Seller’s mortgage must be paid from proceeds	Get the payoff now; if it plus costs exceeds $118,000, you need a short sale
Release of deed of trust recorded 2009 to a different lender	Old loan with no recorded release	Often paid but never released; needs a release or proof of payoff
Death certificate of Thomas Reyes and evidence of his heirs or estate	Co-owner appears to be deceased	His share passes by how they held title and state law; may mean probate
Pay and release judgment against “D. Reyes,” county court, $7,450	Name match only	Not her? An identity affidavit may clear it. Her? It comes out of proceeds
Articles of organization, good standing and operating agreement of the Proposed Insured	Authority to buy	Shifts to the end buyer’s LLC after amendment
Owner’s affidavit as to possession and improvements	Standard	Seller signs; confirm the house is vacant

Schedule B-II (hypothetical) lists the standard exceptions, a 10-foot utility easement along the rear lot line, subdivision covenants, and current-year taxes.

The review in seven steps

Read vesting against your signature page. Here, Thomas never signed. Call Dana that day.
Fix Schedule A. Send the assignment and request an amended commitment naming the end buyer.
Add up every lien in B-I against the price, then rerun your numbers in the MAO calculator if anything changed.
Sort the requirements by who clears them: title company (payoffs), seller (affidavits, death certificate), lenders (releases), attorney (probate), end buyer (entity documents).
Read every recorded document listed in B-II.
Check your deadlines. Your contract’s objection period and the commitment’s expiration both run. Object in writing on time.
Tell your end buyer early. A buyer told about probate in week one often waits; one told the day before closing often walks.

Getting exceptions and requirements cleared

Each common item has a matching fix. Stewart Title’s underwriting manual on extended coverage shows the general pattern for standard exceptions:

Item	What usually clears it
Parties in possession	Inspection, or an owner’s affidavit that no one else is in possession; any tenancy is specifically excepted
Survey matters and unrecorded easements	A current survey acceptable to the company, certified by a registered land surveyor
Unrecorded mechanic’s liens	Owner’s affidavit of no recent improvements, or evidence of completed and paid work, lien waivers, indemnities
Taxes and special assessments	Confirmation of no pending assessment proceedings, plus payment of what is due
Recorded mortgage	Payoff letter, payment at closing, recorded release
Old unreleased mortgage	Release from the lender or successor, or proof of payoff the underwriter accepts
Same-name judgment	Identity or same-name affidavit, or a statement of information in states that use them

Some exceptions will never come off. Recorded easements and covenants stay because they are enforceable rights. Decide whether the end buyer can live with them. Endorsements can sometimes insure over specific concerns at extra cost.

Where beginners lose deals at the title commitment stage

Most title problems are fixable. Deals die when the wholesaler finds out late or misjudges how long the fix takes.

Unreleased liens

A seller swears a mortgage was paid off a decade ago, and it may have been. But if the lender merged or failed since, finding someone who can sign a release can take weeks. Open title the day the contract is signed.

Judgment liens against a same-name owner

Searches are run by name, so a commitment can list judgments against anyone with a similar name. Stewart Title’s California guidance explains that a statement of information is used to distinguish the parties from other people with similar names. The beginner’s mistake is assuming every hit is a stranger. If the judgment is your seller’s and attaches under your state’s rules, it comes out of the seller’s proceeds and may erase the spread.

Heirs and missing signers

Inherited houses are common off-market deals and the files most likely to carry estate requirements. If title is in a deceased owner’s name, every heir may need to sign, or a probate court may need to appoint someone who can. Read our guide to heirs property before you promise a buyer a closing date on one, and bring in a probate attorney in that state when the commitment calls for estate documents.

Letting the commitment and the buyer go stale

The commitment expires, your contract has deadlines, and your buyer’s patience runs out sooner than either. An investor-friendly title company helps by flagging problems fast.

To spot problems before the title company does, learn how to do a title search; for what the final policy covers, see title insurance for investors.

Title commitment questions investors ask

Does a title commitment guarantee the title is clean?

No. The ALTA form says it is not an abstract, opinion, or representation of title, and TDI notes that it does not guarantee there are no current issues or that none will arise. It is a conditional promise to insure.

Do I need an owner’s policy if I am only wholesaling?

In a straight assignment you never take title, so the end buyer is the one who needs owner’s coverage. The CFPB explains that lender’s title insurance protects only the lender and is usually required for a mortgage, while owner’s coverage is what protects the buyer’s equity. In a double close you briefly own it, so ask how the first leg is insured.

What happens if a new lien is recorded after the Commitment Date?

It will not be on the commitment you hold. The title company reruns the search before closing and may amend the commitment with new requirements.

Can my end buyer use my commitment?

Not as it stands. Only a Proposed Insured named in Schedule A may claim under it, so get it amended to name the buyer after you assign.

If you want a mentor to look over your first few title files with you, the mentorship program is one place to get that help.

Keep building your closing know-how

Investor-Friendly Title CompaniesFind one that closes assignments How to Do a Title SearchSpot issues before you offer Title Insurance for InvestorsOwner’s vs. lender’s policies Transactional FundingHow double closings work Judgment LiensWhen they attach and how they clear Heirs PropertyDeals with inherited title Mortgage Payoff StatementsRead the seller’s real payoff Quiet Title ActionsWhen title needs a court

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