ALTA Title Commitment

Question 1

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

Accepted Answer

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

Answer

One schedule listing all encumbrances and requirements

Answer

Two schedules: Schedule A and Schedule B

Answer

Four schedules: A, B, C, and D

Question 2

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

Accepted Answer

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

Answer

A list of requirements the seller must satisfy before closing

Answer

Exceptions and exclusions that will remain in the final policy

Answer

Conditions that must be met before the policy is issued

Question 3

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

Accepted Answer

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

Answer

Will appear as permanent exceptions in the final policy

Answer

Describe the legal boundaries of the insured property

Answer

Identify all recorded lienholders by name and amount

Question 4

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

Accepted Answer

A recorded utility easement running across the property

Answer

The payoff amount required to release an existing mortgage

Answer

A requirement to provide a current ALTA survey

Answer

The identity of the proposed insured under the owner's policy

Question 5

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

Accepted Answer

Establishes the date through which the public records were searched

Answer

Determines the deadline for paying the title insurance premium

Answer

Sets the scheduled closing date for the real estate transaction

Answer

Indicates when the commitment automatically expires by its own terms

Question 6

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

Accepted Answer

Six months from the Commitment Date

Answer

30 days from the Commitment Date

Answer

90 days from the Commitment Date

Answer

One year from the Commitment Date

Question 7

A title commitment is best described as:

Accepted Answer

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

Answer

A guarantee that the property has no title defects whatsoever

Answer

A final title insurance policy that takes effect at the time of application

Answer

An abstract of title summarizing the complete chain of ownership