An accepted offer does not tell you everything about the legal rights attached to a property. Before an Illinois home purchase closes, a title company commonly issues a title commitment describing the policy it is prepared to issue and the conditions that must be met. The document can reveal a mortgage to pay off, a recorded easement, an ownership discrepancy, or another matter that deserves attention before you become the owner.
A commitment is not the same as the final title insurance policy. It is also not a substitute for a survey, inspection, or legal advice. Still, reviewing it with your real estate attorney can help you understand what needs to be resolved and what may remain as an exception to coverage. Here is a practical way to approach it.
What does a title commitment do?
A title insurer evaluates a proposed real estate transaction and sets out the terms on which it is willing to issue a policy. The common American Land Title Association commitment form separates information about the proposed insurance from requirements to be satisfied and exceptions to the coverage. Actual wording and format can vary by insurer and transaction.
The commitment is conditional. It may require the seller’s existing mortgage to be paid, a proper deed to be signed and recorded, taxes to be addressed, and other specified steps to be completed. The insurer then issues the policy according to its terms and the final transaction. The Illinois Department of Financial and Professional Regulation explains that title insurance exists to protect buyers and lenders against covered title claims and defects.
If you want a broader overview of the insurance product itself, LaCava Law Firm has an article on title insurance when buying an Illinois home. The focus here is the commitment you receive before closing.
Schedule A: Verify the basic transaction details
In a typical commitment, Schedule A identifies the proposed insured, the property interest to be insured, the amount of insurance, the current vesting of title, the legal description, and the effective date of the title search or commitment. Check those details against your purchase contract and planned closing documents.
Questions worth asking include:
- Is the seller named in the commitment the same person or entity that signed the contract?
- Is the legal description the one for the property you intend to buy?
- Is the proposed buyer named correctly on the owner’s policy, if one is being issued?
- Are the proposed policy amounts and insured interests what you expect?
- How recent is the commitment date, and will the title company update its search before closing?
The street address is useful for orientation, but the legal description identifies the land interest being conveyed. A mismatch should be addressed with the attorney and title company rather than assumed to be a harmless typo. If the owner is a trust, estate, company, or multiple individuals, the attorney may need to confirm the signers’ authority and the deed that will transfer title.
Schedule B, Part I: What must happen before the policy is issued?
On the widely used ALTA form, Schedule B, Part I lists requirements. These are actions or documents the title company wants completed before it issues the policy. A seller’s existing mortgage payoff is a common example. Others can include obtaining a signed deed, paying taxes or charges, recording documents, or providing evidence that a person signing for an entity has authority.
Do not read a listed lien and conclude automatically that you will inherit it. Some items are expected to be satisfied from the seller’s closing proceeds. The important question is who will clear the requirement, how, and when. Your attorney can coordinate with the title company and seller’s counsel and request confirmation of the proposed resolution.
For example, if the commitment shows two recorded mortgages but the seller says only one loan remains, the discrepancy needs an explanation. A paid-off loan may still have an unreleased lien of record. The closing team may need a recorded release or another solution acceptable to the insurer. The answer depends on the actual records and policy requirements.
Schedule B, Part II: What is excluded from coverage?
Schedule B, Part II commonly lists exceptions to the proposed policy. An exception generally identifies a matter the insurer will not cover under that policy, unless it is removed or modified. Some exceptions are routine; others may matter greatly to your intended use of the home.
Examples can include recorded easements for utilities or access, subdivision covenants, taxes not yet due, rights of parties in possession, or matters that a survey could reveal. A recorded utility easement may be unsurprising, but its location could affect plans for a fence, garage, pool, or addition. A private driveway easement might determine whether you have a legal right to reach the house or whether another party may cross part of the lot.
An exception is not automatically a defect that stops the sale. It is a signal to understand the underlying document and the scope of coverage. Ask your attorney to obtain and review the referenced instrument when its effect is unclear. The attorney can explain whether it should remain, be modified, or be addressed in the transaction.
Read the recorded documents, not just their names
A short line in the commitment may refer to a multi-page easement, declaration, restriction, or agreement. The label alone may not reveal where the burden falls or what the document permits. If a buyer plans to expand the home, build an accessory structure, use a shared driveway, or operate a particular activity, the underlying records can be important.
Likewise, a title commitment does not answer every physical property question. A survey or other appropriate property information may reveal the location of improvements relative to boundaries and easements. An inspection addresses condition. Municipal records may be needed for permits or land use. Your attorney can help identify which additional review fits the property and your plans.
LaCava Law Firm’s article on attorney review in an Illinois home purchase explains how contract deadlines and legal issues can overlap. Title concerns often arise after the initial contract review, so continue sharing new documents with counsel as they arrive.
Lender’s policy and owner’s policy are different
If you finance the purchase, the lender typically requires a lender’s title insurance policy protecting its interest in the property. That policy does not give the homeowner the same protection for their own equity. An owner’s policy is intended to protect the buyer’s covered ownership interest, subject to its exclusions, exceptions, and limits.
The Consumer Financial Protection Bureau explains the distinction between owner’s and lender’s title insurance. Ask which policies are proposed in Schedule A and review the applicable exceptions for each. Do not assume that a lender’s approval of title means every ownership concern you have personally identified has been resolved.
What should happen before closing?
Your attorney, title company, lender, and the seller’s side may be handling different parts of the file. A useful review process is:
- Request the complete commitment promptly. Include all schedules and any referenced documents available from the title company.
- Check names and legal description. Compare them with the contract, deed draft, survey, and mortgage paperwork.
- Ask about each material requirement. Identify the responsible party and the proof the insurer needs.
- Review exceptions with your intended use in mind. Ask for the underlying recorded documents where needed.
- Confirm any requested changes. If an exception is to be removed or modified, ask how that will appear in the final policy.
- Review the updated title position near closing. Later recordings or developments can matter after the initial commitment date.
The title company decides what it will insure. Your attorney helps evaluate what the commitment means for your transaction and whether the contract or closing process needs attention. An unresolved issue might be cleared before closing, addressed with acceptable insurance, negotiated, or handled under contract rights. There is no one-size-fits-all answer.
Frequently asked questions
Is a title commitment proof that the seller has clear title?
No. It is a conditional commitment to issue a policy under stated terms. It identifies requirements and exceptions that should be reviewed and, where appropriate, resolved before closing.
Does title insurance cover every issue listed in the commitment?
No. Matters listed as exceptions may be outside the proposed policy’s coverage. The final policy, endorsements, exclusions, and exceptions control. Have your attorney explain any item that affects your intended use or ownership.
If a mortgage appears in the commitment, will I have to pay it?
Not necessarily. The seller’s mortgage is commonly paid off as part of closing. Your attorney and title company should verify how the lien will be released or otherwise handled so it does not become an unaddressed title issue.
Do I still need a survey or inspection?
A title commitment serves a different purpose. A survey can help with boundaries, improvements, and easement locations, while an inspection concerns physical condition. Ask your attorney and agent what review is appropriate for the property and contract.
When should I send the commitment to my attorney?
As soon as you receive it. Contract and closing deadlines may leave little time to investigate a recorded document or obtain a correction.
Understand what you are acquiring
The title commitment is one of the most useful documents in an Illinois home purchase because it shows the insurer’s proposed coverage conditions and points to recorded matters affecting the property. It is also easy to skim past important items when the closing date is near. Review it with someone who can connect the legal description, requirements, exceptions, survey, and purchase contract.
LaCava Law Firm, LLC assists Illinois buyers with residential real estate transactions and title questions. Contact the firm if you need help reviewing the documents for a home you plan to purchase.