The title-commitment schedule separating conditions for policy issuance from matters excluded or limited under proposed coverage.
Title Commitment Schedule B is the part of a title commitment that separates conditions for policy issuance from matters the proposed policy may exclude or limit.
In a common ALTA-style commitment, Schedule B, Part I contains requirements and Part II contains exceptions. State-promulgated and provider forms can use different labels or organization.
Schedule B is the working checklist and risk map for the title side of closing. Requirements identify what must happen before the insurer will issue the proposed policy. Exceptions identify matters the policy will not insure against, or will insure only as the policy states.
The distinction changes the borrower’s next question. For a requirement, ask who must act, what evidence is needed, and when it must be completed. For an exception, ask what property right or risk remains, whether it affects intended use, and whether any policy modification or endorsement is available and appropriate.
Not every Schedule B item signals a failed transaction. Paying the purchase price, executing the deed, recording the new mortgage, and paying policy charges are routine requirements. A utility easement may be a routine exception. An unreleased mortgage, ownership defect, or unacceptable lien-priority issue may require substantial work.
The title provider issues Schedule B with the Title Commitment after examining available records and transaction information. The commitment may be revised as documents arrive, requirements are cleared, or new matters are found.
The lender reviews Schedule B to confirm that the new mortgage can receive the required priority and that unacceptable exceptions are resolved or covered. The settlement provider uses the requirements to coordinate payoffs, signatures, documents, funds, and recording.
The borrower should review the latest schedule before closing. A marked-up checklist from an earlier date may not show amendments, newly added matters, or the provider’s final treatment. After closing, the borrower should compare relevant exceptions with the issued owner policy rather than assume the commitment itself remains the final coverage document.
| Schedule B part | What it generally contains | Borrower-facing question |
|---|---|---|
| Part I: Requirements | Conditions for issuing the proposed policies | What must be completed, by whom, and by when? |
| Part II: Exceptions | Matters excluded or limited under proposed coverage | What remains on title, and how can it affect ownership or use? |
| Listed matter | Possible treatment |
|---|---|
| Existing mortgage | Pay off and arrange a recorded release or satisfaction |
| Deed and new security instrument | Properly authorize, execute, deliver, and record them |
| Taxes and assessments | Confirm status and handle amounts required for closing |
| Easement or restriction | Review as a continuing property right and possible exception |
| Legal-description discrepancy | Correct documents or provide acceptable evidence |
| Survey matter or encroachment | Resolve, insure, endorse, or except according to underwriting |
The provider’s wording controls. A general table cannot determine the legal effect of a specific Schedule B item.
Schedule B, Part I requires payoff and release of the seller’s old mortgage and proper recording of the buyer’s deed and new deed of trust. Part II lists a recorded utility easement and subdivision restrictions as exceptions.
The old mortgage is not allowed to remain in its current position, so the settlement agent obtains a payoff and follows the provider’s release instructions. The easement and restrictions remain after closing. The buyer reviews whether they affect a planned detached garage rather than assuming every listed item will disappear.
Schedule B differs from Title Commitment Schedule A. Schedule A identifies proposed coverage and transaction facts; Schedule B lists conditions and coverage limitations.
A Title Requirement is a specific condition found in the requirements portion. Schedule B is the broader document section containing that item.
A Title Exception is a specific coverage limitation. Schedule B, Part II is where such exceptions are commonly listed before policy issuance.