How to read a title commitment.

When you get your hands on a Texas Title Commitment (Form T-7), it can look like a wall of intimidating legal text. But think of it simply as a property background check and a pre-closing game plan. The title company is telling you: “Here is what we found out about this property, here is what we are willing to insure, and here is what you need to fix before we sign off.” Texas commitments are always broken down into four letters: A, B, C, and D.

Schedule A

The Facts — Who, What, and How Much

Schedule A is all about the basic details of the transaction. Your job here is to make sure the title company didn't make a typo.

• The Effective Date

  Look at the date listed at the top. This tells you how fresh the data is. If the date is three weeks old, a lien could have been filed yesterday that isn’t showing up yet. You want this date as close to closing as possible.

• The Dollar Amount

  Make sure the proposed policy amounts match your contract exactly. For a buyer, it should be the exact purchase price. For a lender, it should be the exact loan amount.

• The Names

  Check the spelling of the current owner (the seller) and the proposed insured (you, the buyer, or your lender). If a seller is listed as “The Estate of John Doe,” but your contract is signed by “Jane Doe,” you have a paperwork mismatch that needs fixing.

• The Legal Description

  This is not just the street address (like 123 Main St). It's the official county description (e.g., Lot 4, Block G of the Oak Creek Addition). Make sure this matches your survey and contract.

Schedule B

The Exceptions — What We Aren’t Covering

Schedule B is a list of things the title company will not protect you against. These are existing items tied to the land that you just have to accept if you buy the property.

• The Standard Exceptions

  Pre-printed items like utility easements (the electric company's right to run wires across your backyard) or neighborhood deed restrictions (the HOA rules saying you can't paint your house neon pink).

• The “Area and Boundary” Exception

  Look closely at Item 2. By default, the title company won't cover boundary disputes or shorted acreage. If you are the buyer, ask to amend this. For a small fee, they will change it to read “Shortages in Area Only,” meaning you are protected if a neighbor's fence or driveway is secretly encroaching on your lot. You'll need to hand over a clean survey to get this upgrade.

• Specific Exceptions

  Look down the list for any unique items added to your property. If a gas company has a pipeline easement right under where you plan to build a pool, it will be listed here. Review these closely to ensure they don't ruin your plans for the property.

Schedule C

The Requirements — The To-Do List

Schedule C is the most important section for the closing coordinator. It is a literal checklist of problems, liens, and clouds on the title that must be cleared up before anyone can close. If it stays on Schedule C, it won't be insured.

• The Seller's Mortgage Payoff

  The title company will list the seller's current mortgage here. It requires a formal payoff statement and a promise to pay it off using the closing funds.

• Tax Liens and Money Judgments

  If the seller owes back property taxes, IRS taxes, or lost a lawsuit and has an Abstract of Judgment (AJ) against them, it will show up here. The title company requires these to be paid in full at the closing table.

• The Marital/Homestead Check

  In Texas, if the property is a primary residence, Schedule C will often require the seller's spouse to sign the closing documents, even if that spouse isn't on the original deed.

• The Mechanic's Lien Warning

  If there was recent construction, remodeling, or a new roof put on the house, Schedule C will require a signed affidavit from the seller stating that all contractors have been paid in full so no surprise bills pop up post-closing.

Schedule D

Disclosure — Who Gets Paid

Schedule D is a mandatory Texas disclosure that simply shows you the total cost of the title policy, how the premium is split between the title agent and the actual underwriter, and who owns the title company. No homework for you here — it's just pure transparency required by the state.