How to Read Your Title Commitment

A Title commitment is a product created by a title insurance company that encapsulates
information from the contract/property records search a name search for Buyers and Sellers.
Below is a quick guide on how to read a title commitment for Buyers and Sellers:

Schedule A: This section stands for the actual facts of your transaction:

1. Commitment Date
2. Title Company File number (for your reference if you need to call the office)
3. Policy Amount for owners and lenders policy
4. Proposed Insured
5. How property is vested
6. The legal description

Schedule B1: Requirements that must be met for a (CTC) Clear to Close

1. Payment of all mortgages/liens/judgments
2. Provide a vesting deed to the new buyer
3. Payment of all taxes
4. Proof no improvements or an affidavit all payments have been made for improvements
on the property within last 120 days to prevent a mechanics lien claim

Schedule B2: This section provides the exceptions to the policy for the new Buyer

1. Easements/right-of-way
2. Encroachments
3. Defects/liens/encumbrances/adverse claims
Exhibit A: This document provides your full legal description
1. The legal description is what a title commitment insures
a. The legal description is like the social security number of a person
2. Most legal descriptions in Colorado if you are in a subdivision fall into a lot and block