The Commitment for Title Insurance is issued only as a preliminary instrument in
instances in which the title company has a bona fide order for the policy or polices of title insurance specified therein, to be issued within ninety (90) days from the effective date of the Commitment.

Basically, the Commitment for Title Insurance informs those to be insured by a title policy of the condition of the property involved. In addition, it informs the future insured’s of any requirements that must be met before a policy will be issued. The Seller is required to furnish the Commitment to the Purchaser as noted in the contract for sale. If a loan is part of the transaction, the Lender will require a Commitment at some time during the procession of the loan.

A Commitment for Title Insurance consists of four schedules:

SCHEDULE A – sets out the effective date of the commitment, the names of the insured’s, the sale price, loan amount, the estate or interest in the land (fee simple, easement estate, leasehold estate, etc.), the name of the person/s in title at the date of the commitment and the legal description of the property under consideration.

SCHEDULE B – informs the insured’s of everything of record that affects the property, such as restrictions, liens, oil and gas reservations, easements and so on, guarantees ad valorem taxes are paid current through a designated year and in general, limits the liability of the policy/ies to be issued.

SCHEDULE C – informs the insured’s of any requirements that must be met before a policy/ies will be issued.

SCHEDULE D – according to State Rules and Regulations, is a disclosure of the officers of the Title Company and Underwriter, it also discloses the premiums to be charged to the policy/ies and the beneficiary/ies of such premiums.

All Commitment forms, furnished by Underwriters, are exactly the same as to content. The only difference can be in the spacing of the items. The Title Industry is regulated closely by the Rules, Rates and Forms for the writing of Title Insurance in the State of Texas.