Title Commitment Flashcards

A standard ALTA title commitment is organized into how many main schedules?

Answer: Three schedules: Schedule A, Schedule B-I, and Schedule B-II

A standard ALTA title commitment is divided into Schedule A (transaction details), Schedule B-I (requirements), and Schedule B-II (exceptions to coverage).

What information is typically found in Schedule A of a title commitment?

Answer: The effective date, proposed insured, policy amount, and current vesting of title

Schedule A contains identifying transaction details including the effective date, proposed insured, amount of insurance, and how title is currently vested.

Schedule B-I of a title commitment lists items that:

Answer: Must be satisfied or performed before the title policy will be issued

Schedule B-I contains requirements—conditions that must be met or satisfied before the title company will issue the title insurance policy.

Which of the following would most likely appear in Schedule B-II of a title commitment?

Answer: A recorded utility easement running across the property

Schedule B-II lists exceptions to coverage—matters such as easements, restrictions, and encumbrances that will NOT be insured under the final policy.

The effective date of a title commitment is significant because it:

Answer: Establishes the date through which the public records were searched

The effective date establishes the date through which the title examiner has searched the public records, defining the starting point of the insurer's risk.

Under the ALTA 2021 Commitment for Title Insurance, how long is the commitment valid before it expires?

Answer: Six months from the Commitment Date

Under the ALTA 2021 Commitment for Title Insurance, the commitment expires six months from the Commitment Date unless the transaction closes before that time.

A title commitment is best described as:

Answer: A promise by the title company to issue a policy once stated conditions are satisfied

A title commitment is the title company's conditional promise to issue a title insurance policy once all requirements in Schedule B-I are satisfied.