An Arizona buyer’s and seller’s guide to Schedule A, title requirements, exceptions, and potential closing issues.
A title commitment is an offer from a title insurance company to issue a title insurance policy after stated requirements are satisfied and subject to listed exceptions. It identifies the proposed insured parties, the property interest being insured, the legal description, requirements that must be completed before the policy can be issued, and matters the policy will not cover. Buyers and sellers should review it promptly because it may reveal liens, ownership questions, easements, restrictions, or other items that require attention before closing. A commitment is not the final title insurance policy and is not a guarantee that every possible property issue has been discovered.
Key Takeaways
A title commitment is a conditional offer to issue title insurance — not the final policy.
Schedule A generally contains the transaction and property information used for the proposed coverage.
Schedule B requirements identify items that must be completed or resolved before the policy can be issued.
Schedule B exceptions identify matters that will not be covered by the proposed policy.
Buyers should verify names, the property description, access-related matters, easements, restrictions, and unfamiliar exceptions.
Sellers should respond quickly to requests involving liens, loan payoffs, trusts, estates, business entities, marital status, or prior ownership.
Questions should be raised early with the title company and, when appropriate, a real estate attorney, surveyor, tax professional, or other qualified adviser.
What Is a Title Commitment?
A title commitment — sometimes called a preliminary title report or binder — is created in connection with an application for title insurance. Arizona law describes it as a report that offers to issue a title insurance policy subject to the exceptions stated in the report or incorporated by reference.
In practical terms, the commitment explains the title company’s current position before closing: who appears to hold the property interest, what must happen before coverage can be issued, and which matters will remain outside the proposed coverage. It gives the parties, their real estate agents, and the lender an opportunity to identify questions while there is still time to address them.
Is a Title Commitment the Same as a Title Insurance Policy?
No. The commitment comes before closing and describes the conditions under which the title company is prepared to issue coverage. The final owner’s or lender’s title insurance policy is generally issued after the transaction closes, the required documents are recorded, and the commitment requirements have been satisfied.
The commitment should not be read as a promise that the property is free from every possible issue. Coverage is controlled by the terms, exclusions, conditions, and exceptions in the final policy.
How Is a Title Commitment Organized?
The exact appearance can vary by title company, underwriter, transaction, and form. A commonly used ALTA commitment includes a notice, commitment conditions, Schedule A, Schedule B Part I requirements, and Schedule B Part II exceptions. Each section serves a different purpose.
Title Commitment at a Glance
Schedule A: Transaction and Property Information
Schedule A generally provides the basic information for the proposed coverage. Depending on the form and transaction, it may include:
The commitment date and title company file information.
The proposed insured, such as the buyer and/or mortgage lender.
The proposed policy amount.
The estate or interest in the land to be insured, such as fee simple ownership.
The person or entity currently shown as holding the stated interest.
The legal description of the property.
Review carefully: Make sure the buyer’s name, seller or current owner information, property address, and legal description appear consistent with the transaction. The street address is useful for reference, but the legal description is what identifies the land in the title documents.
Schedule B, Part I: Requirements
Requirements are the conditions that must be completed to the title company’s satisfaction before the proposed policy can be issued. Requirements vary, but they may involve:
Payment and release of an existing mortgage, deed of trust, judgment, tax lien, or other recorded obligation.
Properly executed and recorded documents transferring ownership or creating the new lender’s security interest.
Documents confirming authority for a trust, probate estate, limited liability company, corporation, partnership, or power of attorney.
Information or documents needed to address name variations, marital status, a prior owner, or another ownership question.
Payment of title premiums, fees, taxes, assessments, or other required amounts.
Additional affidavits, releases, corrective documents, or approvals required for the specific transaction.
Not every requirement signals a serious problem. Many are routine closing items. However, an unusual lien, a deceased owner, an unreleased loan, a missing signature, or unclear authority to sign may require additional time and documentation.
Schedule B, Part II: Exceptions
Exceptions describe matters the proposed title insurance policy will not cover. Some exceptions are common or standardized; others are specific to the property. Examples may include:
Recorded easements for utilities, drainage, access, or other uses.
Covenants, conditions, restrictions, and other community documents.
Setback lines, plat matters, or rights shown in recorded maps.
Taxes or assessments that are not yet due and payable.
Mineral, water, or other rights reserved or granted in recorded documents.
Matters that would be disclosed by an accurate survey, inspection, or physical observation when not covered by the policy.
Specific liens, leases, access rights, or other recorded interests that will remain after closing.
An exception does not automatically mean the buyer should walk away. It means the listed matter falls outside the proposed coverage. The important question is whether it affects the buyer’s intended ownership or use of the property.
What Should Buyers Look for in a Title Commitment?
Correct names. Verify that the proposed insured names are spelled correctly and match the intended way ownership will be taken.
Correct property. Compare the property information and legal description with the purchase contract and other transaction documents.
Unexpected owners or interests. Ask about unfamiliar individuals, entities, leases, options, or recorded claims.
Access and easements. Determine whether recorded access, utility, drainage, or shared-use rights affect the property.
Restrictions. Review documents that may control additions, parking, rentals, animals, business use, or other plans for the property.
Liens and requirements. Ask how mortgages, judgments, tax liens, or other obligations will be addressed before closing.
Unfamiliar exceptions. Request copies of referenced documents and obtain professional advice when an item could materially affect the purchase.
What Should Sellers Look for?
Sellers should focus on requirements connected to their ownership and obligations. Promptly review requests for payoff authorizations, lien information, trust or entity documents, probate records, divorce decrees, death certificates, prior loan information, or corrective documents.
If an item is inaccurate or has already been resolved, provide supporting documentation as early as possible. For example, an old loan may have been paid but its release was never properly recorded. Locating the prior lender or obtaining a replacement release can take time.
What Sellers Often Miss
Old issues can resurface: A paid loan, prior judgment, name variation, deceased co-owner, or missing business document may not appear urgent until the title search connects it to the property. Waiting until signing to address the issue can delay recording and the release of proceeds. Sellers should answer title requests early, even when they believe the item has already been handled.
Can a Title Commitment Change Before Closing?
Yes. A commitment may be revised or supplemented as new information becomes available, documents are recorded, requirements are satisfied, or the title search is updated. Buyers, sellers, and agents should review updated versions rather than assuming the first commitment will remain unchanged.
When Should You Ask for Professional Advice?
A title and escrow team can explain the general purpose of commitment sections and help locate recorded documents. However, questions about legal rights, boundary disputes, property use, ownership strategy, taxes, probate, divorce, entity authority, or the legal effect of an exception may require advice from an attorney, surveyor, tax professional, lender, homeowners association, or another qualified specialist.
Bottom Line
The title commitment is one of the most important documents delivered before closing. It explains what the title company is prepared to insure, what must be completed first, and what will remain outside coverage. Buyers should review it for accuracy and property-use concerns, while sellers should respond quickly to requirements tied to ownership, liens, and signing authority. Early review gives everyone more time to resolve questions and helps keep the transaction moving toward a smooth closing.
Frequently Asked Questions
When will I receive the title commitment?
Timing depends on the title search, property, county records, and transaction. It is generally delivered after escrow opens and the title order is processed. Review it promptly when it arrives.
Does a title commitment mean the title is clear?
Not necessarily. The commitment may list requirements that still need to be satisfied and exceptions that will remain outside coverage. It is a conditional offer to issue a policy, not a blanket statement that no issues exist.
What is the difference between a requirement and an exception?
A requirement is something that must be completed or resolved before the policy can be issued. An exception is a matter the proposed policy will not cover.
Should I request copies of the documents listed as exceptions?
Yes, especially when an exception is unfamiliar or could affect access, construction, rentals, parking, improvements, or another intended use. Ask the title team how to obtain the recorded document.
What if my name or the property information is wrong?
Notify the title and escrow team immediately. Some corrections are simple, while others may require revised documents or additional information.
Why is an old mortgage still listed if it was paid?
The loan may have been paid without a release being properly recorded, or the available records may not clearly match the payoff. The title team may request evidence or work with the appropriate party to address it.
Can a title commitment reveal a boundary problem?
It may reference plats, easements, or recorded matters, but a standard title search is not a substitute for a survey or physical inspection. Ask about survey-related coverage and consult a qualified surveyor when boundaries are important.
Is the title commitment the document I keep after closing?
The final owner’s or lender’s title insurance policy is the coverage document issued after closing. Keep the final policy with your important property records.
Sources
Arizona Revised Statutes § 20–1562: Definition of preliminary report, commitment, or binder
American Land Title Association: 2021 Commitment for Title Insurance
Consumer Financial Protection Bureau: Title commitment report description
Consumer Financial Protection Bureau: What is owner’s title insurance?
Consumer Financial Protection Bureau: Shop for title insurance and closing services
Have a question about a title commitment?: The A Team at American Title Service Agency helps real estate professionals and their clients understand title and escrow documents, communicate clearly, and move toward a smooth closing. Email ATeam@atsaaz.com to connect with our team or ask about English- and Spanish-speaking escrow support.
Author Bio & Contact Information
Alexis Johnson is a title representative and marketing partner with the A Team at American Title Service Agency in Arizona. She helps real estate professionals support smooth closings, strengthen communication, and grow their businesses.
Contact: ATeam@atsaaz.com
Disclaimer: This article provides general education, not legal, tax, financial, survey, or insurance advice. Requirements vary, so consult the appropriate professional about your transaction.