Chapter 1
Property Rights and Interests
Course: Texas Real Estate Exam Prep
Subject: Texas State Salesperson Exam Prep
Chapter: Title And Closing Of Texas Real Estate Salesperson Exam Prep
Understanding the Title Commitment
Purpose: Shows condition of title; what title company will insure
Three Schedules:
Schedule A (The Basic Info):
- Proposed insured
- Property legal description
- Effective date
- Proposed policy amount
Schedule B-I (Requirements):
- What must be done to issue policy
- Typically:Pay off existing liensExecute new deedPay title premiumProvide survey
- Pay off existing liens
- Execute new deed
- Pay title premium
- Provide survey
Schedule B-II (Exceptions):
- What policy will NOT cover
- Standard exceptions:Taxes (current year)EasementsRestrictive covenantsSurvey defectsMechanic's liens
- Taxes (current year)
- Easements
- Restrictive covenants
- Survey defects
- Mechanic's liens
Texas Real-Life Example:
Title Commitment for Houston home:
Schedule A:
- Proposed insured: John Buyer
- Property: Lot 5, Block 3, Oak Forest Subdivision
- Policy amount: $450,000