Basic Elements of a Title Insurance Commitment

By

Michael Roussis

Michael Roussis

When you buy real estate in Florida, one of the most important steps in the closing process is making sure that the property’s title is clear. That is where title insurance comes in – and before a policy is issued, you will first receive a title insurance commitment.

What Is a Title Insurance Commitment?

A title insurance commitment is essentially a promise from the title insurance company that it will issue a title insurance policy once certain requirements are met. Think of it as a roadmap: it tells buyers, sellers, lenders, and real estate agents what needs to be taken care of before closing.

The Four Main Parts of a Florida Title Commitment

Florida title insurance commitments follow a standard format, typically broken down into four schedules (sections):

1. Schedule A – The Basics

This section lays out the who, what, and how much:

• The type of policy to be issued (owner’s or lender’s)
• The proposed insured (the buyer and/or lender)
• The amount of coverage
• A legal description of the property

2. Schedule B-I – Requirements

This section lists everything that must be completed before the title insurance policy can
be issued. Common requirements include:

• Paying off existing mortgages or liens
• Providing certain legal documents (like deeds or affidavits)
• Recording necessary paperwork with the county

Think of Schedule B-I as the to-do list for closing.

3. Schedule B-II – Exceptions

This section is very important. It identifies matters that the title insurance policy will
NOT cover. Examples include:

• Easements (such as for utilities)
• Deed restrictions or covenants
• Taxes or assessments not yet due
• Certain rights of others that affect the property

Schedule B-II is the “fine print” – helping buyers understand what limitations or restrictions may impact ownership.

4. The Jacket

The jacket is the standard set of conditions issued by the title insurance company. It is more like the boilerplate legal framework that applies to the policy.

Why the Commitment Matters

The title insurance commitment is more than just paperwork – it is your opportunity to see:

• Whether there are issues with the property’s title
• What must be resolved before closing
• What your title insurance policy will (and will not) protect you against

By reviewing the commitment carefully – with the help of your title agent or attorney – you can move toward closing with confidence.

The Bottom Line

A Florida title insurance commitment might seem technical, but it is designed to protect buyers, sellers, and lenders. By understanding its four main parts – Schedule A, Schedule B-I, Schedule B-II, and the Jacket – you’ll know exactly what is needed to secure clear ownership of your new property.