A title commitment is one of the most important documents in a Texas real estate transaction, and one of the least understood. It is the title insurance company’s formal promise to issue a title insurance policy once specified conditions are met. It tells you who owns the property, what issues must be resolved before closing, and what your future policy will and will not cover. Understanding what this document contains and what action it may require from you can prevent costly surprises on or after closing day.
What a Title Commitment Is and What It Is Not
A title commitment is a preliminary document issued by a title company following a title search of the property. It summarizes what the search revealed about the condition of the title and sets out the conditions that must be satisfied before the company will issue a final title insurance policy. It is not itself a policy. It is a contract to issue a policy, subject to the requirements and exceptions it lists.
In Texas, title commitments follow a standardized format regulated by the Texas Department of Insurance (TDI). The promulgated commitment form, known as Form T-7, is the required format for title commitments in Texas residential transactions. Because TDI regulates both the forms and the premium rates for title insurance in Texas, the structure of every commitment you receive in a Texas transaction follows the same framework. What varies is the content revealed by the title search, which is why reviewing the specifics matters.
Under the TREC 1-4 Residential Contract, the title company generally has 20 days from the receipt of the executed contract to deliver the title commitment, with an automatic 15-day extension if needed. The commitment remains effective for a defined period, typically 90 days, or until the policy is issued, whichever comes first.
The Four Schedules of a Texas Title Commitment
Schedule A: The Transaction Details
Schedule A contains the foundational information about the transaction. It identifies the current owner of record, the buyer as the proposed insured, the legal description of the property, the policy amount (typically the purchase price), and the type of policy to be issued. The owner’s policy (Form T-1) and the lender’s policy are the two most common types.
Every detail in Schedule A should be verified carefully. The legal description must match the property description in the sales contract. The names of all parties must be accurate. An error here, such as a misspelled name or an incorrect metes-and-bounds description, can delay closing or create complications with recording documents after the fact.
Schedule B: Exceptions to Coverage
Schedule B is among the most consequential sections for buyers. It lists the matters that the title insurance policy will not cover. These are title risks that title insurance generally protects against, but which the company is excepting from coverage in this specific transaction because they were revealed in the title search.
Common Schedule B exceptions in Central Texas transactions include utility easements crossing the property, deed restrictions imposed by prior owners or a developer, mineral rights reservations made in earlier conveyances, public rights-of-way, HOA-related encumbrances, and survey-related matters. Under Texas Insurance Code Section 2502.002, title companies are prohibited from insuring against loss caused by unmarketability of title, so certain structural exceptions are built into every policy.
Exceptions do not necessarily prevent a sale, but they can significantly affect how you use the property. An easement that allows a utility company to access a portion of your land may restrict where you can build. A mineral rights reservation means a third party may have the legal right to access the surface for extraction activities. Reading Schedule B carefully and asking questions about anything unclear before closing is essential.
Schedule C: Requirements Before Closing
Schedule C lists the conditions that must be satisfied before the title company will issue the final policy. Think of it as the closing to-do list. Common requirements include paying off the seller’s existing mortgage or deed of trust, clearing unpaid ad valorem taxes, releasing mechanic’s liens or judgment liens, recording a deed to correct a gap in the chain of title, and verifying the authority of any entity involved in the transaction.
Every item in Schedule C must be resolved. If a Schedule C requirement is not satisfied by closing, the title company cannot issue the policy, and the transaction cannot close. Buyers and their agents should review this schedule as soon as the commitment is received and identify any items that may require additional time, cost, or legal action to resolve. Some requirements, such as clearing an old lien from a prior owner, may be straightforward. Others, such as resolving a probate issue or correcting a heirship affidavit, can take weeks.
Schedule D: Disclosures and Premium Information
Schedule D contains administrative and disclosure information, including the identity of the title company and the underwriter backing the policy, any ownership interests in the title agency, and the premium breakdown for the commitment. Texas law requires title companies to disclose affiliated business arrangements and ownership interests in Schedule D. This schedule ensures transparency about who is providing the title services and on what financial terms.
Common Title Issues in Central Texas
Central Texas properties present title patterns that are less common in urban settings. Buyers purchasing rural land, acreage tracts, or older properties in smaller communities should be alert to the following situations.
- Mineral Rights Separation – Rights may belong to someone else, including access to your land. Review Schedule B carefully.
- Access & Utility Easements – Roads, water lines, or utilities may cross other properties. Make sure access is legally documented.
- Heirship & Estate Issues – Older or inherited properties may have unclear ownership. Expect legal steps (Schedule C requirements).
- Survey & Boundary Problems – Fences or structures may not match legal lines. A new survey can reveal encroachments.
What to Do When You Receive Your Title Commitment
The title commitment deserves careful attention as soon as you receive it. Do not set it aside or skim through it quickly. The following approach will help you use it effectively.
- Verify Schedule A for accuracy: confirm that the legal description, party names, and policy amount match your contract exactly.
- Read Schedule B completely: identify every exception and ask the title company to explain any item you do not understand. If an exception affects how you can use the property, know that before you close.
- Review Schedule C promptly: identify all outstanding requirements and confirm with the title company and your real estate agent who is responsible for satisfying each one and by what deadline.
- Ask about Survey exceptions: if Schedule B includes a broad survey exception, consider whether ordering a new survey to remove or limit that exception is appropriate for your transaction.
- Address mineral rights: if mineral rights are excepted, ask what is known about their current ownership and whether any active mineral leases affect the property.
Questions are far easier to resolve before closing than after. Once the deed is recorded and the policy issued, the exceptions in Schedule B become permanent limitations on what the policy covers.
Central Texas Buyers: Properties in rural or semi-rural Central Texas often involve mineral rights severance, undocumented access arrangements, or ownership histories that require careful title examination. Schedule B exceptions are not necessarily deal-breakers, but each one represents a limitation on your future title coverage. Understanding what each exception means for your use and ownership of the property before closing is essential.
Work With a Central Texas Title Company
Understanding your title commitment is a critical step toward a confident, well-protected closing. Texas Country Title is ready to help. Reach out through the contact page or call (254) 605-0140 to discuss your situation.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For legal guidance tailored to your specific situation, consult a licensed attorney.