Basic overview of the four sections of the Commitment for Title Insurance

“A” is for “Actual Facts” In other words, this is the “Who, What, Where and How Much” of the transaction. You’ll see the names of the seller and buyer, a description of the property, the sales price, and the name of the lender if any.

“B” is for “Buyer Notification” of areas where other parties have some interest or control of the use of property. An example would be a utility easement, where the city would have a part of the land reserved for their use, or a building setback requirement that prevents the homeowner from building within a certain distance from the front of the property. These items are not covered.

“C” is for “Clear to Close” These items must be resolved in order to transfer title to the new owner. This would include such things as a mortgage to be paid off, marital status, home improvement liens, unpaid taxes, or a requirement that another person - such as an heir or a former spouse - participate in the sale of the property.

“D” is for “Disclosure” This last section outlines all parties who will collect any part of the insurance premium, including underwriters, title agents and attorneys.