How to Read a Title Commitment Schedule B: The Hidden Section That Makes or Breaks Real Estate Deals

A couple was three days from closing on their dream home when they discovered a problem. They had plans to build a pool in the backyard—it was one of the main reasons they chose the house. But buried on page 47 of their title commitment was a utility easement that prohibited any structures within 15 feet of the property line. Right where they wanted the pool.

The information was there the whole time. It just wasn't surfaced until it was almost too late.

This is why understanding your title commitment matters—not to become a legal expert, but to know what questions to ask and when to ask them. The section that contains the most important information for your future plans? It's called Schedule B.

What Is a Title Commitment?

Think of a title commitment as a health report for your property's ownership history. Before the title company agrees to insure your purchase, they research who has owned the property, what debts or claims might be attached to it, and what restrictions exist on how it can be used.

The title commitment is their report to you. It says: "Here's what we found, here's what needs to happen before closing, and here are the things our insurance won't cover."

A title commitment has three main parts:

Schedule A contains the basics—the property description, who's buying, who's selling, and how much insurance you're getting
Schedule B-1 lists requirements that must be completed before closing
Schedule B-2 lists exceptions—things the title insurance won't protect you against

Your agent and title company handle most of this. But Schedule B-2 is where you'll want to pay attention, because it directly affects what you can do with your property after you own it.

Schedule B-1: The Requirements Checklist

The first part of Schedule B lists everything that needs to happen before closing. Think of it as a to-do list that must be completed for the deal to go through.

Common items include:

Paying off the seller's existing mortgage
Clearing any unpaid property taxes
Recording the deed that transfers ownership to you
Various signatures and certifications from the seller

Most of these items are standard and handled behind the scenes by the title company, your lender, and your agent. The title company tracks these requirements and makes sure everything is completed before closing day.

Your agent can walk you through any unusual requirements. If something on Schedule B-1 doesn't make sense, ask—that's what they're there for.

Schedule B-2: What Your Title Insurance Won't Cover

This is the section that matters most for your future plans. Schedule B-2 lists every "exception" to your title insurance coverage. In plain terms: these are things that exist on the property that your insurance won't protect you against if they cause problems later.

Some exceptions are standard and appear in almost every title commitment:

Rights of anyone currently living on the property
Issues that would show up on a survey
Potential claims from recent construction work

But the specific exceptions are what you need to understand. These are unique to your property and can include:

Easements — An easement gives someone else the right to use part of your property for a specific purpose. Utility companies often have easements to access power lines or pipes. These can restrict where you build fences, pools, sheds, or additions.

HOA declarations — If the property is in a homeowners association, the title commitment will reference the HOA's rules. These might limit what colors you can paint, whether you can rent the property, or what you can park in your driveway.

Restrictive covenants — These are rules recorded against the property, often from when the neighborhood was developed. They might require minimum home sizes, prohibit certain business uses, or restrict satellite dishes.

Setback lines — These define how close to your property lines you can build. They affect additions, detached garages, and yes—pools.

Prior liens or judgments — Sometimes claims against previous owners weren't properly cleared. These can cloud your ownership if not addressed before closing.

Questions to ask your agent: "Are there any easements that would affect building a fence or addition? Do the HOA rules have rental restrictions? Are there any items here that seem unusual?"

Why This Matters for Your Plans

Here's the thing about title commitments: the information in Schedule B-2 only matters if it conflicts with something you want to do.

That utility easement from our opening story? It had been in the property records for 30 years. Previous owners never cared because they never wanted a pool. But for this buyer, it changed everything.

Before you close, think about your plans for the property:

Are you planning any additions or renovations?
Do you want to build a pool, shed, or detached garage?
Might you rent the property out someday?
Do you plan to run any kind of business from home?
Are there specific features that made you choose this house?

If any of these are important to you, make sure your agent knows. They can cross-reference your plans against the Schedule B-2 exceptions and flag anything that might be a problem.

You don't need to read all 50 pages of the title commitment yourself. But you do need to communicate your intentions so the right people can review the right sections.

What You Can Do

The good news: some exceptions can be addressed before closing. Sellers may be able to clear certain items. Some standard exceptions can be removed if you pay for an upgraded policy or get a survey. Other issues can be handled through special endorsements to your title insurance.

But here's the key—you can only address what you know about.

Before closing, make sure to:

Tell your agent about any specific plans you have for the property
Ask your agent to review Schedule B-2 with your intentions in mind
Request explanations for anything you don't understand
Ask if any exceptions can be removed or modified

Your agent works with title commitments regularly. They know what's routine and what deserves a closer look. Agents who use transaction intelligence tools can surface these issues even faster—but the most important step is simply having the conversation.

The Bottom Line

A title commitment isn't meant to be scary. It's meant to be informative. Schedule B tells you what the title company found in their research and what limitations come with the property.

Most of what's in Schedule B-2 is routine and won't affect your plans at all. But the items that do matter—the easement that affects your pool, the covenant that affects your rental plans, the restriction that affects your home business—those are worth understanding before you sign.

Your agent is your guide through this process. The title company is on your side too. Ask questions, share your plans, and make sure everyone is looking at Schedule B with your future in mind.

Because understanding what you're buying—including its limitations—is how you avoid surprises after the keys are in your hand.

Share this guide with your agent → to start the conversation about your title commitment review.