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2020 Buyer's Guide Step 5 Continued

TITLE COMMITMENT

The Title Commitment indicates the type of title insurance requested by the proposed insured. It defines
exclusions and exceptions from coverage under which the policy will be Issued. This Title Commitment is
issued prior to a final policy of insurance and is necessary to ensure that a policy can be offered.

The Title Commitment is reviewed for the following:

Ownership Vesting
The name(s) on the Title Commitment should be the same as those for the seller on the signed purchase contract.
Only the true owner of record can sell the subject property that is in the contract for sale.

Exceptions
Bonds, Deeds of Trust, property taxes, Conditions Covenants and Restrictions (CC&Rs), all recorded documents,
and easements of record are carefully reviewed. Experienced escrow officers and title companies go out of their
way to resolve problems quickly and accurately.

Informational Notes
This is the area of the report in which important facts about the property are discovered. In some cases, these
notes contain information that could affect the title of the subject property.

Explanation of Title Commitment
Also referred to as a Prelim or Preliminary Title Commitment.

Schedule A
The Schedule A of your title commitment contains general information about the transaction such as the property’s
legal description, sales price, loan amount, lender, and the names and marital status of both the seller and buyer.

Schedule B
The Schedule B contains exceptions that are associated with the property such as easements, homeowner’s
association by-laws, covenants, conditions and restrictions (CC&R’s), recorded easements, leases, and various
other items of records that transfer along with the subject property.
They are called “exceptions” because clear title will be given and the buyer’s rights are subject to these items.

Requirements
Requirements are items that must be remove and/or record with the county in order to provide a clear title to the
seller. Requirements may include property tax, tax liens, judgments, assessments, homeowners association dues,
or a variety of other items that may be associated with the property or property owners.

If at any time you require assistance or have questions regarding your title commitment, please contact your
escrow officer.

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