Question 1

What are the schedules in a title commitment?

Accepted Answer

Schedules: Schedule A (identification: the date of the commitment, the proposed insured, the type of policy (owner’s or lender’s), the amount of insurance, the current vested owner, and the property legal description), Schedule B-I (requirements: conditions that must be satisfied before the title policy will be issued: execution and recording of the deed, payoff and release of existing mortgages, satisfaction of judgments and liens, and payment of taxes), and Schedule B-II (exceptions: matters that the title policy will not cover: standard exceptions and specific exceptions discovered in the title search).

Question 2

What are standard exceptions in Schedule B-II?

Accepted Answer

Standard exceptions: survey matters (encroachments, boundary discrepancies, and easements not shown in the public records), rights of parties in possession (tenants or occupants whose rights may not be recorded), taxes (current and subsequent year taxes that are not yet due), and mechanic’s liens (claims for unpaid construction work). These standard exceptions: can often be removed (the survey exception by providing a current survey; the parties-in-possession exception by an affidavit; the tax exception by verification of payment). Removing standard exceptions: provides broader coverage to the insured.

Question 3

How should Schedule B-I requirements be handled?

Accepted Answer

Handling: the buyer’s attorney and the title company coordinate to: identify all requirements, assign responsibility (the seller is responsible for most requirements: paying off mortgages, satisfying liens, and clearing judgments), set deadlines (requirements should be completed before or at closing), and verify completion (the title company confirms that each requirement has been met before issuing the policy). If a requirement cannot be met: the closing may be delayed, the contract may need to be amended, or the buyer may terminate if the defect is material.

Title Commitment: Schedule

Title Commitment Schedules

Schedule A

Schedule B-I

Schedule B-II

Related Terms

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