How to Read a Title Commitment: A Guide for Denver Real Estate Agents
- Jerad Larkin
- 16 hours ago
- 7 min read
The title commitment hits your inbox, you forward it to your client, and you quietly hope nobody asks you to explain what any of it means. If that sounds familiar, you are not alone. Most real estate agents treat the title commitment like paperwork that lives between the title company and the closer.
Here is the problem with that. The agents who actually read the title commitment are the ones who catch issues early, protect their commission, and look like the sharpest person at the closing table. The ones who do not are the ones scrambling two days before closing when a lien nobody flagged shows up.
How do you read a title commitment as a real estate agent?
A title commitment has three parts: Schedule A (the deal being insured), Schedule B-1 (requirements to clear before closing), and Schedule B-2 (exceptions not covered). Denver agents should read all three the day it arrives.
I am Jerad Larkin, a Sales Executive with Chicago Title Colorado, and I read title commitments across the Denver Metro every single day. I also teach real estate agents how to read them, because a document this important should not feel like a foreign language.
The good news is that a title commitment is not complicated once you know what each section is for. Nearly everything on it is routine. Your real job is to find the two or three items that actually affect your Colorado deal and get ahead of them before they threaten your closing date.
What Is a Title Commitment and Why Does It Matter for Denver Agents?
A title commitment is a title company's written promise to issue a title insurance policy once certain conditions are met. It is based on a search of the public record for the property, and it reflects everything recorded against that title as of a specific date.
The industry-standard version most Colorado closings use is the ALTA Commitment for Title Insurance, published by the American Land Title Association. Whether your buyer is purchasing in Denver, Aurora, or anywhere along the Front Range, the format is the same.
It matters to you as an agent because the commitment surfaces liens, easements, unpaid taxes, and ownership issues while there is still time to fix them. A title commitment read on day one is a solved problem. A title commitment read on the day of closing is an emergency.
What Are the Three Parts of a Title Commitment?
Every commitment breaks into three working sections. Learn what each one does and you can read any commitment that crosses your desk.
Schedule A: What Deal Are We Insuring?
Schedule A is the summary of the transaction. It tells you what is being insured and for whom.
The commitment (effective) date, which shows how current the title search is
The proposed policy amount, usually the purchase price for the owner's policy and the loan amount for the lender's policy
The proposed insured, meaning your buyer and the lender
The current owner of record and how they hold title, known as vesting
The legal description of the property
Read Schedule A against your contract. Confirm the names are spelled correctly, the vesting matches the seller who signed your listing agreement, and the legal description ties to the right parcel. Small mismatches here cause big delays later. For the difference between the owner's and lender's amounts, my post on what a lender's title insurance policy covers in Colorado breaks it down.
Schedule B-1: What Has to Happen Before Closing?
Schedule B-1 lists the requirements. These are the action items that must be completed before the title company will issue the policy.
Paying off and releasing the seller's existing mortgage or deed of trust
Clearing recorded liens, judgments, or unpaid HOA dues
Recording the new deed and any new loan documents
Providing entity paperwork when a trust, LLC, or estate is on title
Think of Schedule B-1 as your pre-closing checklist. As First American explains in its title commitment guide, many of these requirements are handled automatically at closing, like the seller's loan being paid off from sale proceeds. Your job is to spot the ones that need action from your seller, such as a missing release or an estate that needs to be probated.
Schedule B-2: What Is Not Covered?
Schedule B-2 lists the exceptions, which are the items the title policy will not cover. This section scares buyers the most and usually deserves it the least.
Recorded easements, such as a utility company's right to access part of the lot
Covenants, conditions, and restrictions (CC&Rs) and HOA rules
Mineral and water rights reserved to prior owners
Standard survey exceptions and matters an accurate survey would show
Most exceptions are routine and exist on nearly every property in Colorado. The ones worth a closer look are the exceptions that affect how the property can be used or built on, like an easement running through the area your buyer wants to fence or expand. When a survey question comes up, understanding the difference between an ILC and a full survey in Colorado helps you guide the conversation.
How Should Denver Agents Actually Work a Title Commitment?
Reading the document is one thing. Working it like a professional is another. Here is the process I teach agents across the Denver Metro.
Open it the day it arrives. Do not let it sit in your inbox. Time is the only thing that reliably cures title problems.
Confirm Schedule A matches your contract. Check names, vesting, purchase price, and legal description before anything else.
Read every Schedule B-1 requirement and assign an owner to each one. Decide who is responsible: the title company, the seller, the lender, or you.
Scan Schedule B-2 for anything that affects use, access, or value. Flag it and raise it with your client early, not at the walkthrough.
Call your title contact with questions. That is exactly what we are here for.
What Red Flags Should Agents Watch For?
Most of a title commitment is boilerplate, but a handful of items deserve immediate attention. Watch for these:
Unexpected liens or judgments recorded against the seller
Vesting that does not match the person actually selling the home
An estate, trust, or deceased owner with no clear authority to sell
Large unpaid HOA dues or a pending special assessment
An easement crossing the buildable or usable part of the lot
Mechanic's liens on new or recently renovated construction
None of these has to kill a deal. But each one needs a plan, and the plan gets easier the earlier you find it. This is also why closing security matters so much. If you have not reviewed it lately, my wire fraud reminder for real estate agents is worth a second read before your next closing.
How Does Reading the Title Commitment Protect Your Commission?
Deals do not usually fall apart because of a title issue. They fall apart because a title issue was found too late to fix. A judgment that takes ten days to release is a non-event when you catch it three weeks out and a disaster when you catch it the morning of closing.
Reading the commitment early gives you time, and time is what turns problems into paperwork. It also positions you as the agent who is genuinely on top of the transaction, which is how referrals get made. Buyers and sellers remember the agent who saw the problem coming.
This is the part of the business I care about most. Part of what we do at Chicago Title Colorado is help agents across Denver and the Front Range understand the closing process so they can lead their clients with confidence. If you want the bigger picture on why this document exists at all, my post on why title insurance is more than just another closing cost is a good companion to this one. You can also read the state's own consumer overview from the Colorado Division of Insurance.
Frequently Asked Questions
What is the difference between Schedule B-1 and B-2 on a title commitment?
Schedule B-1 lists requirements, which are things that must be done before closing, like paying off the seller's loan. Schedule B-2 lists exceptions, which are items the policy will not cover, like recorded easements and CC&Rs. Requirements are action items; exceptions are conditions you accept when you buy the property.
Who reads the title commitment, the agent or the title company?
Both should. The title company produces and clears the commitment, but the smartest Denver agents read it too. You know the deal and the client, so you are the one most likely to spot a vesting mismatch or an easement that matters to your buyer's plans.
How long is a title commitment valid in Colorado?
A title commitment is effective as of its commitment date and is generally valid for a limited window, often up to six months, though it should be updated close to closing to capture anything newly recorded. Always confirm the current effective date with your title company rather than assuming an older commitment is still accurate.
Is a title commitment the same as a title insurance policy?
No. The commitment is the promise to issue a policy once the requirements are met. The policy itself is issued after closing. The CFPB explains owner's title insurance and why an owner's policy is worth having once that policy is finally issued.
What should a Denver agent do after finding a problem on the title commitment?
Call your title contact immediately and describe what you see. Most issues, from liens to missing releases, have a standard path to resolution, and your title company handles them constantly. The earlier you raise it, the more options you have to keep the closing on track.
Want more tools, tactics, and title education like this? Subscribe to my weekly emails at milehightitleguy.com, where I share real estate marketing ideas, AI tools, and invites to upcoming classes across Denver and Colorado. Reach out anytime if you want me to walk your office through reading a title commitment.
Jerad Larkin
Sales Executive | Chicago Title Colorado
milehightitleguy.com