Title Commitment: What It Is, How to Read It, and How It Differs From a Title Search
A title commitment is an insurer's offer to issue a title policy once requirements are met. How to read its exceptions and how it differs from a title search.
Quick answer
A title commitment is a title insurer's written statement, issued before closing, that it is willing to issue a title insurance policy if stated requirements are met. It lists the requirements to insure and the exceptions the policy will carry. It is not a title search report, and it is not the policy itself.
What is a title commitment?
The Texas Department of Insurance explains it this way in its title insurance FAQ: "The title commitment comes before closing; the title policy is issued after closing." It adds that the commitment "says that a title company is willing to issue title insurance under certain conditions and if the seller fixes certain problems" (Texas Department of Insurance, Title insurance FAQ).
Florida's insurance code uses the same idea in law. Fla. Stat. 627.7711 describes the work an insurer does before a policy exists as "preparation and issuance of a title insurance commitment setting forth the requirements to insure, and preparation and issuance of the policy" (Florida Legislature, Online Sunshine, s. 627.7711). The statute treats the commitment and the policy as two separate products.
In plain terms, a commitment is a promise with conditions. It tells the buyer and the lender what the insurer found, what must be fixed first, and what the policy will not cover.
Definition
Title commitment — A written document, issued before a real estate closing, in which a title insurer states the conditions on which it is willing to issue a title insurance policy on a property.
Title commitment vs title search: what is the difference?
A title search gathers information. A title commitment is an insurer's decision based on that information. Florida's statute draws the line itself: it defines a "title search" as "the compiling of title information from official or public records," and says primary title services, which include the commitment, "do not include closing services or title searches, for which a separate charge or separate charges may be made."
So a search report answers "what is on the record?" and a commitment answers "on what terms will we insure it?" For the wider comparison, see title search vs title insurance.
| Title search report | Title commitment | Title policy | |
|---|---|---|---|
| What it is | A compilation of recorded documents | An insurer's conditional offer to insure | The issued insurance contract |
| When it exists | Before or during underwriting | Before closing | After closing |
| Main question answered | What is on the public record? | What must be cleared, and what will be excepted? | What losses are covered? |
| Who produces it | A searcher, agency, attorney or automated service | A title insurer or its agent | A title insurer |
| Is it insurance? | No | No, but it sets the terms of the policy | Yes, within its terms |
What does a title commitment contain?
Layouts differ by insurer and state, and this article describes only what official sources state. Two parts matter most to a buyer. The first is the description of the property and the person who is expected to hold title. The second is the list of matters the insurer will not cover.
TDI notes that Texas policy forms are standardized, and that the parts of a policy that may be changed are "the property description in Schedule A, the Exceptions in Schedule B, and the Exclusions." Texas treats the property description as Schedule A and the exceptions as Schedule B of the policy. A Texas commitment previews those items before the policy is issued.
The commitment also states requirements. Florida's statute calls them "the requirements to insure." These are the steps that must happen before the insurer will issue the policy, such as paying off a recorded mortgage or recording a corrective document.
Whether you see the parts labeled Schedule A, Schedule B or something else depends on the insurer's form. If your commitment uses other labels, ask the title agent to point out where the property description, the requirements and the exceptions sit.
How do you read the exceptions in a title commitment?
Read exceptions as the list of things the policy will not cover. TDI says the commitment "lists potential issues, exclusions, or exceptions," and that these items "can become exclusions or exceptions under Schedule B of your policy. Exceptions and exclusions are items not covered by the policy."
Each exception is a recorded or known matter. Common kinds include easements, recorded restrictions, taxes not yet due and unpaid taxes. For each one, ask three questions. Is it a fact about the property that I accept, such as a utility easement? Is it a problem the seller must fix before closing, such as an old lien? Or is it a gap that extra coverage, a survey or a corrective document can close?
TDI also states that "the agent may be able to remove an exception, if a title problem is cleared up or if you buy additional coverage." Exceptions are not always final. Ask about each one.
Many exceptions come straight from recorded documents. Our guides to easements, liens on a house and how to check for liens on a property explain the most common ones. A lawyer can tell you what a particular exception means for your plans. TDI says you may want to review potential issues with one.
What a title commitment does not promise
How does a title commitment work from order to policy?
A search is compiled
Someone gathers title information from official or public records. Florida's statute defines this step as a title search and notes it can be charged separately.
The insurer decides whether it can insure
Under Fla. Stat. 627.7711, primary title services include determining insurability "in accordance with sound underwriting practices" based on a reasonable title search, then clearing underwriting objections and requirements.
The commitment is issued
The insurer sets out the requirements to insure and the exceptions. The buyer, the seller, the lender and the agents review it.
Requirements are met before closing
The seller or closing agent pays off recorded debts, records releases or fixes document errors so the requirements are satisfied. See what is escrow for how funds and documents move at closing.
The policy is issued after closing
TDI says the policy comes after closing and "provides coverage for the property." The exceptions you accepted appear in Schedule B of the policy in Texas.
How long does a title commitment take?
The sources we reviewed give no fixed number of days, so we do not state one. Timing depends on how fast the records can be searched, how many requirements the insurer finds and how quickly the parties respond.
What the sources do say is the order. The commitment is issued before closing. Practically, that means you should ask your title agent when it will be ready, so you can read the exceptions while there is still time to ask for changes or negotiate fixes.
Who pays for a title commitment?
In Texas, TDI says the premium "includes charges for additional services such as the title search, the title examination, and closing the transaction," and that the buyer and seller may negotiate who pays it. Texas premiums are regulated, and TDI states that every title company charges the same premium for a policy.
Florida's statute notes that title searches and closing services can carry separate charges from the premium. Other states have their own rules, so ask who pays each item and read the closing figures before you sign.
Where HeritageDeed fits
HeritageDeed reports recorded documents. It does not issue commitments or title insurance. Our Current Owner Search is $49, the Two Owner Search is $79 and the 30-Year Search is $129, in the counties on the title search coverage page. A records report is a search, not a commitment, and it is not legal advice.
Key takeaways
Key takeaways
- A title commitment is an insurer's conditional offer, issued before closing, to issue a title policy.
- It differs from a title search report: the search compiles records, and the commitment states the terms on which the insurer will insure.
- Read the exceptions as the list of things the policy will not cover, and ask which can be removed or insured over.
- The commitment does not guarantee clean title, and the policy comes only after closing.
- Layouts and who pays for what vary by insurer and state, so confirm the details with the title agent.
Frequently asked questions
- What is a title commitment?
- A title commitment is a title insurer's written statement, issued before closing, that it will issue a title policy if stated conditions are met. It lists the requirements to insure and the exceptions the policy will carry. It is not the policy and not a guarantee.
- What is the difference between a title commitment and a title policy?
- The Texas Department of Insurance says the commitment comes before closing and the policy is issued after closing. The commitment says the company is willing to insure under certain conditions. The policy is the contract that actually provides coverage for the property.
- Is a title commitment the same as a title search?
- No. Florida law defines a title search as compiling title information from official or public records, and treats it separately from the commitment. A search reports what is recorded. A commitment states what the insurer will insure, what must be fixed and what it will except.
- What are exceptions in a title commitment?
- Exceptions are matters the policy will not cover. TDI explains that items in the commitment can become exclusions or exceptions under Schedule B of the policy. Examples include easements, restrictions and unpaid taxes. Some can be removed if the problem is cleared up or extra coverage is bought.
- Does a title commitment guarantee the title is clear?
- No. TDI states a commitment does not guarantee that there are no current issues or that none will arise in the future. It lists potential issues, exclusions and exceptions. Discuss how to clear them with the title agent, and consider having a lawyer review them.
- How long does a title commitment take?
- The official sources we reviewed state no fixed time. It depends on the record search, the number of requirements found and how fast parties respond. It must be issued before closing, so ask your title agent for a date early enough to review the exceptions.
- Can I negotiate or remove an exception on a title commitment?
- Sometimes. TDI says the agent may be able to remove an exception if a title problem is cleared up or if you buy additional coverage. Raise questions about each exception before closing, because the exceptions you accept appear in the policy.
Sources
Primary records and official documentation cited in this article.
HeritageDeed provides public-record search reports only. Reports do not constitute title insurance, an attorney opinion of title, or a title insurance commitment.