Most buyers get the title commitment a week or two before closing day and never open it. That is a mistake. This document is the title company’s formal promise to insure your property, but it also spells out every condition, exception, and potential problem tied to that property’s history. If you sign at closing without reading it, you could be agreeing to limitations and risks you did not know existed.

Fortunately, a title commitment follows a consistent structure, and it’s less overwhelming to read once you know what each section is telling you.

At Pathways Property Lawyers, attorney Roger G. Jain has been guiding Houston homebuyers, sellers, and real estate investors through closings since opening the firm in 1996. We review title commitments, identify the issues worth asking about, and help you walk into closing with a clear picture. Call our legal team at 832-364-6234 or fill out our confidential contact form.

What a Title Commitment Actually Is

A title commitment is the title company’s preliminary agreement to issue that policy, once certain requirements are satisfied. Think of it as a conditional promise. The company is essentially saying that they have researched this property’s title history, here is what was found, and here are the conditions under which they will insure it.

Here is where Texas stands apart. Most states use title insurance forms created and approved by the American Land Title Association (ALTA). Texas has taken its own path. In Texas, the forms are created and approved by the Texas Department of Insurance (TDI). The purpose is the same, but the structure is different enough that a national guide to reading title commitments will not match what is in front of you at a Texas closing. That matters, and this article walks you through what you will actually see.

In Texas, buyers and lenders almost always purchase title insurance at closing. The American Land Title Association reports that title insurers paid out over $600 million in claims in a recent year. This is a reminder that title problems are real and not rare. Reading the commitment is how you know what you are actually being protected against.

The Schedules You Need to Know

A Texas title commitment is organized into four schedules. Each one covers a distinct part of the picture.

1. Schedule A: Transaction details: buyer, seller, purchase price, legal description
2. Schedule B: Exceptions — what the policy will not cover
3. Schedule C: Requirements that must be met before the policy is issued (the most important schedule)
4. Schedule D: Disclosures about the title company, agents, and fee splits

Schedule A: The Basic Facts

Schedule A is the starting point. It lists the effective date of the commitment, the type of policy being issued (owner’s, lender’s, or both), the purchase price, and the legal description of the property.

Pay close attention to the legal description. This is not the street address. It is the formal, recorded description of the land, including the lot number, subdivision, county, and sometimes metes and bounds. If it does not match the property you are under contract to buy, that discrepancy needs to be resolved before you sign anything at closing.

Schedule C: The Most Important Schedule

This is the section most buyers skip. It should be the first one you read after Schedule A.

Schedule C lists the requirements or conditions that must be satisfied before the title company will issue the actual insurance policy. These can include paying off an existing mortgage on the property, releasing a recorded lien, providing a death certificate for a deceased owner, or getting a court judgment recorded and cleared.

Think of Schedule C as a to-do list with legal consequences. If any item on this list is not resolved before closing, the title company cannot issue a clean policy. If you close without those items being addressed, you may end up owning a property with unresolved legal claims attached to it. In Texas, Schedule C is the most critical part of the commitment. Do not skim it.

Schedule B: What the Policy Will Not Cover

Slow down here. Read every line.

Schedule B lists the exceptions to your coverage. These are the things the title insurance policy will not protect you against, even after you close and pay for the policy. Some exceptions are standard across most Texas properties: taxes for the current year, rights of parties in possession, and easements that would appear on a current survey. Others are specific to your property and deserve a direct conversation with your attorney.

For example, if Schedule B lists a utility easement running along the back of the lot, that could affect your ability to build a fence, add a pool, or put up a structure in that area. You will not find out on closing day. You will find out later, when a contractor or city inspector tells you no.

Exceptions That Should Prompt a Question

Not every exception is a dealbreaker. But some are worth slowing down for before you proceed. In Texas real estate, a few come up often enough to be named directly.

• Mineral rights reservations
• Easements and rights of way
• Deed restrictions and restrictive covenants
• Matters disclosed by an accurate survey

Schedule D: Disclosures

Schedule D discloses information about the title company itself, such as ownership, underwriters, and how fees are split among the parties involved. Most buyers do not spend much time here, but it is worth a look if you want to understand who is being paid and why.

You Do Not Have to Figure This Out Alone. Call Our Real Estate Law Firm in Texas Now!

Pathways Property Lawyers has been helping Houston real estate buyers, sellers, and investors understand exactly what they are signing for 30 years. If your closing is coming up and you have questions about your title commitment, call us before closing day. That is what we are here for.

Call our legal team at 832-364-6234 or fill out our confidential contact form.

Thomas H. Smith III

Thomas H. Smith III was born and raised in Arlington, Texas. He graduated from Texas A&M University in 2002 with a degree in Chemistry and a minor in Mathematics. He then attended the University of Houston Law Center where he served as an Articles Editor for the Houston Journal of International Law.

Tom began working at Roger G. Jain & Associates as a clerk in February 2004. When he graduated from UH Law Center in 2005, he continued here as an attorney, where he has worked through today. He is a trial lawyer, whose insight, analysis, and attention to detail have helped the firm obtain its favorable results. Read more here.