Title Commitment in Texas: What Home Buyers Need to Know
Introduction
One of the most important documents you'll receive during a Texas real estate transaction is the title commitment. Although many buyers focus on inspections and financing, a title commitment can reveal legal issues that may affect your ownership rights, use of the property, or ability to sell the property in the future.
Understanding the purpose of a title commitment before closing can help you identify potential problems and avoid costly surprises after the transaction is complete.
What Is a Title Commitment?
A title commitment is a document issued by a title company that outlines the conditions under which it is willing to issue a title insurance policy. It summarizes information about the property's ownership, identifies matters affecting the title, and lists requirements that must be satisfied before closing.
While it is not the title insurance policy itself, the title commitment provides buyers and sellers with valuable information about the legal status of the property before ownership is transferred.
What Information Is Included?
A title commitment commonly includes information such as:
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Current ownership
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Legal description of the property
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Existing mortgages
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Liens
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Easements
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Restrictive covenants
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Mineral reservations
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Property tax information
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Requirements that must be completed before closing
Each item should be reviewed carefully because it may affect your rights as the future property owner.
Why Reviewing a Title Commitment Is Important
Many title issues can be resolved before closing if they are identified early. Failing to review the title commitment could result in unexpected legal complications after the purchase.
Examples include:
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Outstanding liens
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Utility easements
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Ownership disputes
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Recording errors
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Restrictions limiting the use of the property
Understanding these issues before closing allows buyers to make informed decisions and address concerns while the transaction is still pending.
Common Title Problems
Some of the most common issues identified in a title commitment include:
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Judgment liens
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Tax liens
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Mechanic's liens
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Easements
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Encroachments
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Boundary disputes
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Errors in prior deeds
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Missing heirs
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Probate issues affecting ownership
What Happens If a Problem Is Found?
Not every issue prevents a transaction from closing. Some matters can be resolved before closing, while others may require additional documentation, negotiations, or legal action.
Depending on the circumstances, parties may need to:
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Obtain lien releases
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Correct recorded documents
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Resolve ownership disputes
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Address probate issues
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Negotiate contract amendments
An experienced real estate attorney can help evaluate the significance of title issues and determine the appropriate course of action.
Frequently Asked Questions
Is a title commitment the same as title insurance?
No. A title commitment is the title company's promise to issue title insurance once certain requirements are met.
Should I read my title commitment?
Yes. Buyers should carefully review the title commitment before closing to understand matters affecting the property.
What are Schedule B exceptions?
Schedule B lists exceptions and matters that may not be covered by the title insurance policy, such as easements, restrictions, or other recorded interests.
Can title problems delay closing?
Yes. Certain title defects may need to be resolved before ownership can be transferred.
Related Resources
When Should You Contact a Real Estate Attorney?
If your title commitment identifies liens, ownership concerns, easements, restrictive covenants, or other legal issues, consulting with a Texas real estate attorney before closing may help protect your investment and prevent future disputes.