Reading the Preliminary Title Commitment in Texas

In Texas, a Preliminary Title Insurance Report is called a Preliminary Title Commitment. It contains the same information, however, the nomenclature is different. Here’s what you can expect to see:

Schedule A – “A” is for “Actual Facts.”

In other words, this is the “who, what, where and how much” of the transaction. You’ll see the names of the seller and buyer, a legal description of the property, the sales price, the name of the lender if any and how title is vested. This section also describes the amount of title insurance coverage to be issued in the policy.

Schedule B | “B” is for “Buyer Notification.”

This schedule indicates areas where other parties have some interest or control of the use of the property. An example would be a utility easement, where the city would have a part of the land reserved for their use, or a building setback requirement that prevents the homeowner from building within a certain distance
from a property line. These items are listed as exceptions in the title policy and are not covered.

Schedule C | “C” is for “Clear to Close.”

These items must be resolved or “cured” in order to transfer title to the new owner. This would include such things as a mortgage to be paid off and released, marital status, home improvement liens, unpaid taxes, or a requirement that another person, such as an heir or a former spouse, participate in the sale of the property.

Schedule D | “D” is for “Disclosure.”

This last section outlines all parties who will collect any part of the title insurance premium, including underwriters, title agents and attorneys. It also discloses the estimated amount of the title premium to be collected.