Preliminary and Final Title Commitment: What Sellers Need to Know

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During the title process, sellers will hear two similar—but very different—terms: preliminary title commitment and final title commitment. Understanding the difference between them, and how each document is structured, helps sellers avoid confusion and respond correctly when title questions arise.

What a Title Commitment Is

A title commitment is a formal statement from the title company outlining the conditions under which it is willing to issue a title insurance policy at closing. It is not insurance itself—it is a promise to insure once specific requirements are met.

Think of the title commitment as a checklist and disclosure combined:

  • It confirms who owns the property
  • It identifies what must be resolved before closing
  • It discloses what will remain on title after closing

What a Preliminary Title Commitment Is

The preliminary title commitment (sometimes called a prelim) is issued early in the transaction, after the initial title search is completed.

From a seller’s perspective, the preliminary commitment:

  • Shows what the title company currently sees in public records
  • Identifies liens, loans, and recorded items
  • Lists conditions that must be satisfied before closing
  • Provides time to correct issues before deadlines approach

This is a working document. It is expected that items listed in the preliminary commitment will be addressed, updated, or removed before closing.

What a Final Title Commitment Is

The final title commitment reflects the status of title after required conditions have been satisfied and just before closing.

In practical terms, the final commitment:

  • Confirms ownership and legal description are correct
  • Shows that required liens will be paid or released at closing
  • Reflects final transaction details
  • Supports issuance of the title insurance policy

Once the transaction closes, the title insurance policy is issued based on this final commitment.

How Preliminary and Final Commitments Differ

  • Preliminary commitment: early snapshot + to-do list
  • Final commitment: confirmed path to issuing title insurance
  • Preliminary: subject to change
  • Final: reflects resolved conditions

Sellers should expect changes between the two. That’s the normal progression of the title process.

Understanding the Sections of a Title Commitment

While formatting varies slightly by title company, most title commitments are divided into three main sections.

Schedule A — Basic Information

Schedule A provides the foundational details of the transaction. It typically includes:

  • Effective date of the title search
  • Proposed insured parties (buyer and/or lender)
  • Policy amount (usually the purchase price or loan amount)
  • Current owner(s) of record
  • Legal description of the property

Sellers should review this section carefully to confirm ownership names and property description are correct.

Schedule B — Requirements

Schedule B (often labeled “Requirements”) lists what must be completed before the title insurance policy can be issued. These are action items.

Common Schedule B requirements include:

  • Payoff of existing mortgages or deeds of trust
  • Release of liens or judgments
  • Execution of seller documents
  • Correction of ownership or legal description issues

From a seller’s perspective, this is the most important section to address promptly.

Schedule B — Exceptions

Schedule B also lists exceptions—items that will remain on title after closing and are not insured over.

Common exceptions include:

  • Recorded easements (utilities, access, irrigation)
  • Rights-of-way
  • CC&Rs or HOA documents
  • Property taxes not yet due and payable

These items are not errors. They are disclosures of recorded matters that affect the property.

What Sellers Should Focus On

Sellers are not expected to interpret title law—but you should:

  • Confirm ownership names are correct
  • Understand which items must be resolved before closing
  • Ask questions about anything you don’t recognize
  • Respond promptly if documentation or clarification is requested

Your listing agent and the title officer work together to guide you through this.

How This Fits Into the Seller Process

  1. Offer is accepted
  2. Title search is completed
  3. Preliminary title commitment is issued
  4. Requirements are satisfied
  5. Final title commitment is prepared
  6. Title insurance policy is issued at closing

Questions About Your Title Commitment?

Title documents can feel technical, but you don’t have to navigate them alone. If you want help understanding what you’re seeing—or what needs to be addressed before closing—we’ll explain it clearly and help keep the transaction on track.

Contact a Two70 Agent

FAQ

Should I be worried if my preliminary commitment lists many items?

Not necessarily. Many items are standard and expected. The key is understanding which ones require action.

Can title issues be fixed after closing?

Some issues can, but many must be resolved before closing. That’s why the preliminary commitment is important.

Will the final commitment look cleaner than the preliminary?

Yes. Most requirements are cleared by closing, leaving only standard exceptions.

Is the title commitment the same as the title insurance policy?

No. The commitment comes first. The insurance policy is issued after closing.

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