The first time you receive a copy of a title company commitment, you might find it difficult to understand.  Actually, the commitment is an easy document to read.  Once familiar with the commitment, it becomes a road map to follow to ensure that the property being transferred is in insurable condition.

Explanation:

Schedule "A" - Information regarding policy or policies issued.  Who is receiving the insurance and who has the right to deed our their interest.

Date - This is the date and time to which the records have been examined.

GF Number - Guaranty File Number, this number is given by the company to identify the file.  Use this number when calling for any information on the file.  It is specific to your transaction.

Policies or Policy - This indicates what type of policy is to be issued, who is to be inured and for what amount.

Estates or Interest - Show what type of interest is presently being held in the land.

Vesting - Names of the parties appearing to have title to the property according to the public records.

Schedule "B" - Items 1 through 9 are preprinted exceptions to Schedule "B", will appear on all commitments.

Schedule "C" - The third part of the commitment tells the Escrow Officer and all other persons who are privy to the information contained therein exactly what needs to be taken care of or resolved prior to closing and issuing the policies.

In Schedule "C" items are not resolved to the satisfaction of the title insurer, they may elect not to insure the title at all; or may add these matters to Schedule B as exceptions to coverage.

Schedule "D" - This divulges the directors and officers of the underwriting company.  These disclosures are made pursant to procedural rule P-21 promulgated by the State Board of Insurance.

Anna Gonzales writes for Will & Allen REALTORS(r) and Lelda Will Properties, as well as other industry related sites. She is an accounts representative for First American Title in Houston.