Title Commitment Red Flags Before Closing (2026 Checklist)

A clean-looking title commitment can still hide expensive problems. If you review it line by line before signing, you can catch issues while there is still time to negotiate credits, repairs, or a delayed closing.

This guide breaks down what to check in Schedule A, Schedule B-I, and Schedule B-II so buyers, sellers, and investors avoid last-minute surprises.

What a title commitment actually tells you

A title commitment is the title insurer's conditional promise to issue a policy after specific requirements are satisfied. It is not final insurance coverage yet.

• Schedule A identifies the property, policy amount, and current proposed insured parties.
• Schedule B-I lists requirements that must be completed before policy issuance.
• Schedule B-II lists exceptions that stay outside coverage unless removed.

If you skip the commitment review, you can close on a property with exceptions that become your problem after recording.

Red flags in Schedule A

1. Name mismatch: buyer/seller legal names do not match contract entities.
2. Property mismatch: legal description differs from contract exhibits or MLS remarks.
3. Wrong vesting language: ownership structure does not reflect your estate plan or entity strategy.
4. Underinsured amount: lender and owner policy amounts are lower than purchase or loan terms.

Any mismatch in Schedule A should be fixed before documents are signed.

Red flags in Schedule B-I requirements

• Open mortgages that must be released but have no payoff timeline.
• Tax, utility, or municipal liens marked as unresolved.
• Probate or estate filings still pending with unclear authority to sell.
• Entity documents missing for LLC or trust sellers.
• Judgment liens attached to a similar name with no clarification from title.

Ask for written confirmation of who is responsible for clearing each requirement and by what date.

Red flags in Schedule B-II exceptions

Exceptions are often where risk hides. You want to know which ones are standard and which ones need negotiation.

• Survey exceptions: broad language about encroachments or boundary conflicts.
• Easement exceptions: old utility or access rights that can limit development plans.
• Covenant restrictions: HOA or deed restrictions that conflict with intended use.
• Mineral rights exceptions: partial severance that can impact future value.
• Party-in-possession exceptions: signals possible tenancy or occupancy disputes.

How to negotiate risky exceptions

1. Request a current survey when exceptions are too broad.
2. Ask title to remove generic survey language if a recent survey is acceptable.
3. Require payoff letters and recorded releases for all monetary liens.
4. Get HOA estoppel or resale package documents in writing before closing.
5. Push unresolved items into a seller cure deadline or escrow holdback.

If the seller cannot cure major defects, evaluate a contract extension or termination option before wiring funds.

48-hour pre-closing review workflow

• Re-read the final commitment against your contract and amendments.
• Verify any promised lien releases are received and recordable.
• Confirm legal description consistency across commitment, deed draft, and lender docs.
• Check vesting language with your attorney or closing desk if ownership structure changed.
• Document unresolved exceptions in a written email trail before closing day.

When to pause a closing

Delay closing when exceptions materially change use, insurability, or resale. Common examples include unresolved judgment liens, access easements that block intended improvements, and missing authority for estate or LLC sellers.

A one-day delay is usually cheaper than post-closing litigation.