ALTA Title Commitment 1

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

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

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

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

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

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

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

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

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.

ALTA - American Land Title Association Practice Test

ALTA - American Land Title Association Practice Test

ALTA Title Commitment 1