If you’re in the process of buying real estate—whether a home, an investment property, or a commercial space—you already know there’s a lot to keep track of. One critical document that deserves your full attention during the due diligence phase is the title commitment.
The title commitment is often issued shortly after you sign the purchase agreement, and it’s one of the most important tools you have to protect your future use and enjoyment of the property.
A title commitment is a document issued by a title company that outlines the terms and conditions under which it will issue a title insurance policy once the transaction closes. It typically includes three main sections:
Schedule A – Basic details: who’s buying, who’s selling, the legal description of the property, and the proposed insured.
Schedule B-I – Lists requirements that must be satisfied before the title company will insure the title (such as paying off liens or recording a deed).
Schedule B-II – Lists exceptions—matters that will not be covered by title insurance. This is where you may find easements, covenants, or rights-of-way affecting the property.
The title commitment tells you whether the property you’re buying comes with baggage—legal or practical—that could limit how you use it or expose you to future conflict.
Review the title commitment carefully to learn these things before closing: Are there restrictions or easements that could interfere with your plans for the property? Do adjacent property owners have rights that could impact your use or enjoyment (e.g., access roads, shared driveways, or drainage easements)? Are there old liens, mortgages, or boundary issues that the seller hasn’t cleared up?
If you don’t catch these issues early, you might inherit them, and cleaning them up after closing is a lot more complicated and costly than resolving them now.
The due diligence period is your window to review the title commitment and raise concerns. This is when you have the most leverage to ask the seller to address problems before you close and become the one responsible.
Is there an old mortgage that still shows up? The seller should clear it. Is there a blanket easement that you don’t like? Now’s the time to investigate whether it can be modified or removed. Is the title subject to outdated or overly restrictive covenants? You might want to rethink the deal or negotiate a fix.
Restrictive covenants are limitations placed on how you can use the property. They’re often found in older deeds or neighborhood declarations, and they can be surprisingly broad. Common examples include prohibitions on building certain structures, rules about fences or landscaping, or limitations on the type of business you can operate from the property. Some covenants are decades old and may no longer reflect how the area is used today.
One particularly important restriction to watch for is whether you’re allowed to lease or rent the property. Some neighborhoods or property associations prohibit short-term rentals (like Airbnb), impose minimum lease terms, or limit the number of units that can be leased at one time. If you’re buying the property as an investment, or even if you simply want flexibility in the future, these limitations can seriously affect your plans and potential income. In a commercial setting, many restrictive covenants dictate what types of businesses are or are not allowed to operate within a certain geographic area. As such, a restrictive covenant can greatly impact your intended use of the property for your business, so it is imperative to be aware of that prior to closing.
That’s why it’s critical to read them closely and ask: Do these covenants conflict with what I want to do with this property? If so, talk to your attorney. Some restrictive covenants can be challenged, waived, or modified—but it’s a lot easier to identify and address them before you close than after you’ve already bought the property.
By reviewing and flagging these issues now, you give yourself the opportunity to either get the seller to cure the problem or decide if the property is still the right fit for you.
What should you do? Read through the title commitment carefully—especially Schedules B-I and B-II. Confirm the seller is the true owner and the property description matches what you’re expecting. Ask questions if anything is unclear. Your real estate attorney or title agent can explain terms and help you understand the risks. Request necessary changes or clean-up from the seller and put them in writing.
Buying real estate is exciting, but it’s also a major investment. A thorough review of the title commitment ensures you know what you’re actually buying and gives you the chance to fix problems before they become yours.
Don’t skip it. Don’t gloss over it. It’s your best tool to protect your rights and your peace of mind.
For help reviewing your title commitment—or with any other real estate legal questions—contact Ailana McIntosh, an experienced attorney and MSBA Real Estate Law Certified Specialist, for trusted, practical guidance before you close.
