title-commitment

# Title Commitment and Policy Drafts an ALTA-standard Title Commitment identifying state of title, requirements for policy issuance, and exceptions to coverage. ## Prerequisites Collect before drafting: - **Property** — legal description, APN, county, state - **Transaction** — purchase price or loan amount, policy type (Owner's/Loan/Leasehold), closing date - **Vesting** — current owner(s) of record with recording reference - **Title search** — all encumbrances, liens, easements, CC&Rs, judgments from examination - **Parties** — proposed insured(s), full legal names with entity designations - **Encumbrances** — mortgages, deeds of trust, tax status, assessments to address at closing ## Document Structure ### Header - Title: "COMMITMENT FOR TITLE INSURANCE" - Issuing company: full legal name, jurisdiction-licensed - Commitment number: `[YEAR]-[OFFICE CODE]-[SEQ]` - Effective date: date through which title search was conducted ### Schedule A — Transaction Details Draft in order: 1. **Policy type** — ALTA Owner's (2006), Loan, or Leasehold; specify form version 2. **Policy amount** — purchase price (owner's) or loan amount (lender's); format `$X,XXX,XXX.00` 3. **Proposed insured** — full legal names with entity designations; specify ownership percentages if multiple 4. **Current vesting** — owner(s) per most recent deed with recording reference (instrument number or book/page) 5. **Legal description** — verbatim from deed or survey; jurisdiction-appropriate format (metes and bounds, lot/block, government survey); include plat references; separate multiple parcels ### Schedule B, Part I — Requirements List all conditions for policy issuance in closing-timeline order: 1. Premium and fees payment 2. Purchase price / loan funding confirmation via settlement statement 3. Conveyance instrument — deed executed, acknowledged, recorded 4. Existing lien releases — payoff statements + recorded satisfactions for all non-surviving mortgages, DOTs, judgment liens, tax liens 5. Owner's affidavit — possession, mechanic's liens, unrecorded interests, recent improvements 6. Entity authority — good standing, resolutions, incumbency certificates (if entity parties) 7. Survey — current ALTA/NSPS if needed to remove standard survey exception 8. Gap coverage — gap indemnity or bring-down search if effective-to-closing gap exists Distinguish requirements due **before**, **at**, and **after** closing. ### Schedule B, Part II — Exceptions Open with: policy will not insure against loss from the following unless removed or modified prior to closing. **Standard exceptions** (removable by endorsement — note applicable ALTA endorsement form number): - Rights/claims of parties in possession not in public records - Easements not shown by public records - Encroachments, boundary issues discoverable by survey/inspection - Mechanic's/materialmen's liens not yet of record - Taxes/assessments not yet shown as liens **Specific exceptions** — each must include full detail: | Type | Required Detail | |------|----------------| | Real property taxes | Current year status; prior year confirmation | | CC&Rs | Recording reference; subdivision/HOA designation | | Easements | Holder, purpose, location, recording ref; appurtenant vs. servient | | Surviving mortgages/DOTs | Lender, original principal, recording ref, estimated balance | | Judgments/liens | Creditor, amount, recording ref; property vs. owner's interest | | Lis pendens | Case number, court, nature of action | | Special assessments/CDD | Authority, purpose, amount, payment status | | Mineral/subsurface rights | Scope of severance, recording reference | ## Pitfalls and Checks - Every recorded-document reference needs jurisdiction-appropriate locator info (instrument number OR book/page OR official record number) - Maintain exact consistency in party names, legal descriptions, and recording references throughout - If assuming existing financing, except the surviving lien in Part II — do **not** list it as a requirement to release - Do not draft endorsements inline; reference applicable ALTA endorsement form numbers only - Spell out months in dates; use `$X,XXX,XXX.00` for dollar amounts - Mark any unverifiable citation or statutory reference as `[VERIFY]`