What exactly are you looking at when a title commitment lands in your inbox — and which parts actually matter before a Colorado closing? That's the question I get most often from agents and buyers here in El Paso County, and the honest answer is that a title commitment isn't as intimidating as it looks once you know how it's built. It's essentially a promise from the title company to issue a title insurance policy, provided a specific list of conditions is met. Read it right and you'll spot problems weeks before they can blow up a closing. I'm Ben Gosz, and this is the plain-English breakdown I wish every agent had.
What is a title commitment?
A title commitment (sometimes called a "commitment for title insurance" or "title binder") is the document a Colorado title company issues after searching the public record on a property. It tells you three things: who currently owns the property, what has to happen for a clean policy to issue, and what the title company will not insure against. In Colorado, the commitment is built on the ALTA (American Land Title Association) form, so the structure is consistent whether you're closing in Colorado Springs, Monument, or Falcon.
The commitment is organized into schedules. The two that matter most for your day-to-day review are Schedule A and Schedule B. Get comfortable with those and you've handled 90% of what you'll ever need.
Schedule A vs. Schedule B at a glance
| Schedule A | Schedule B | |
|---|---|---|
| Purpose | The facts of the deal | The conditions & the carve-outs |
| Answers | Who, what, how much, which policy | What must be cleared, and what isn't covered |
| Key contents | Commitment date, policy amount, current owner (vested party), legal description, proposed insured | Section 1: requirements to clear; Section 2: exceptions from coverage |
| What to check first | Is the buyer/seller named correctly? Is the sale price right? Is the legal description complete? | Any liens, judgments, or unexpected easements? Anything that needs a payoff or release? |
| Who it protects | Sets up coverage for the proposed insured | Section 2 limits what the policy will cover |
Schedule A: the facts of the deal
Schedule A is the snapshot. In a few short paragraphs it lays out the commitment date (the effective date of the title search — anything recorded after this isn't reflected yet), the policy amount (usually the purchase price for an owner's policy, the loan amount for a lender's policy), the current vested owner (the person or entity the record says owns it today), the proposed insured (your buyer, and/or their lender), and the legal description of the property.
My advice: read Schedule A like a proofreader. A misspelled name, a wrong middle initial on a vesting, or a legal description that doesn't match the contract are exactly the kind of small errors that stall a Colorado closing. Catch them early and they're a five-minute fix; catch them at the table and you've got a problem.
Schedule B: the conditions and the carve-outs
Schedule B is where the real review happens, and it splits into two parts.
Schedule B, Section 1 — Requirements
These are the things that must happen before the title company will issue the policy. Think: pay off and release the seller's existing mortgage, satisfy an outstanding tax lien, obtain a deed from the correct party, or record a death certificate to clear a deceased joint tenant. Every item here is a to-do that has to be checked off before closing. If a payoff or release is going to take time, this is where you find out.
Schedule B, Section 2 — Exceptions
These are the items the policy will not cover. Some are standard "pre-printed" exceptions; others are specific to the property. Here's how the common Colorado exceptions break down:
| Exception | What it means | Should you worry? |
|---|---|---|
| Taxes for the current year | Property taxes not yet due/payable are excepted | Routine — prorated at closing |
| Recorded easements | Utility, access, or drainage rights across the parcel | Usually fine; review location vs. improvements |
| CC&Rs / HOA covenants | Restrictions recorded against the subdivision | Common in Colorado Springs metro; read for use limits |
| Mineral reservations | Someone else may own subsurface mineral rights | Very common in Colorado; note the surface-use impact |
| Survey matters | Encroachments/boundary issues a survey would show | Consider an ALTA/extended policy to remove |
| Mechanic's liens | Unpaid contractors/subs, esp. on new builds | Watch closely on new construction |
Many of the standard exceptions in Section 2 can be removed by buying an extended coverage owner's policy and providing an acceptable survey. That's a conversation worth having with your buyer, especially on rural or newer-construction parcels around El Paso County where mineral rights and mechanic's liens come up more often.
Owner's policy vs. lender's policy — a quick note
You'll often see two policy amounts referenced. The lender's policy protects the mortgage lender for the loan amount and is required by nearly every lender. The owner's policy protects the buyer's equity for the full purchase price, is a one-time premium paid at closing, and lasts as long as they own the home. In Colorado the owner's policy is customarily negotiated in the contract — worth confirming who's paying on every deal.
Ben's quick review checklist
When a commitment hits my desk, I run the same fast pass every time: confirm the names and vesting on Schedule A, confirm the legal description matches the contract, confirm the policy amount is right, then move to Schedule B — clear the Section 1 requirements against the timeline, and read every Section 2 exception to decide what can be removed with extended coverage or a survey. Do that consistently and you'll rarely be surprised at the closing table.
Frequently asked questions
What's the difference between Schedule A and Schedule B on a title commitment?
Schedule A states the facts of the transaction — the commitment date, policy amount, current owner, proposed insured, and legal description. Schedule B lists the conditions: Section 1 is the requirements that must be cleared before the policy issues, and Section 2 is the exceptions the policy will not cover.Is a title commitment the same as a title insurance policy?
No. A title commitment is a promise to issue a policy once the Schedule B, Section 1 requirements are satisfied. The actual title insurance policy is issued at or after closing.Who pays for the owner's title insurance policy in Colorado?
In Colorado it's negotiable and spelled out in the purchase contract. Customarily the seller pays for the owner's policy in many Colorado Springs area transactions, but always confirm what the contract says on each deal.Why are mineral rights listed as an exception on my Colorado title commitment?
Mineral rights in Colorado are frequently severed from surface ownership, meaning a third party may own the subsurface minerals. The title company excepts these because it can't insure rights that aren't part of the record for that owner. Review the potential surface-use impact.Can Schedule B exceptions be removed?
Many standard exceptions can be removed by purchasing an extended coverage owner's policy and providing an acceptable survey. Property-specific exceptions like recorded easements or mineral reservations typically remain.How current is the information in a title commitment?
It's effective as of the commitment date shown on Schedule A. Anything recorded after that date isn't reflected until the commitment is updated, which is why a final update is run near closing.Ben Gosz is an SVP Sales Executive with Chicago Title of Colorado in Colorado Springs. This article is educational and not legal advice; consult your title professional on any specific transaction.