Texas Title Commitment: A Montgomery Buyer’s Guide

Ever open a title commitment and feel like you are reading another language? You are not alone. When you buy a home or land in Montgomery, that packet is one of the most important documents you will receive before closing. In this guide, you will learn what a Texas title commitment does, how to read Schedules A, B, and C, which Montgomery County exceptions to watch, and the questions to ask so you close with confidence. Let’s dive in.

What a Texas title commitment is

A title commitment is the title company’s written promise to issue your title insurance policy once listed conditions are met. It shows what the insurer will cover and which items will be excluded. In Texas, commitments use forms and practices adopted by the Texas Department of Insurance. The commitment has an effective date, which is the cutoff for what the title company reviewed in public records.

For Montgomery buyers, the commitment reflects documents filed with the Montgomery County Clerk and tax items shown by the appraisal district and local taxing entities. You will often see items like mineral reservations, easements for utilities and pipelines, subdivision covenants, and Municipal Utility District, or MUD, references. Reading it closely helps you catch what must be cleared before the policy issues and what will remain as an exception.

How to read Schedules A, B, and C

Schedule A: The basics

Schedule A answers who, what, and when.

• Effective date of the title search.
• Proposed insureds, usually you for the owner’s policy and your lender for the loan policy.
• Policy type and amount. The owner’s policy usually equals the purchase price and the lender’s policy equals the loan amount.
• Estate or interest, often fee simple.
• Legal description and property address.

What to check:

• Confirm your name is spelled exactly as you will take title.
• Make sure the legal description matches the recorded plat or deed. If you are buying acreage, confirm the deeded acreage matches what you negotiated.
• Ask if anything recorded after the effective date needs to be added before closing.

Schedule B: Requirements and exceptions

Schedule B is the heart of the commitment. It usually appears as two parts.

• Part I: Requirements. These are the to‑do items before the policy will issue. Common examples include paying off the seller’s mortgage, confirming current year property taxes, recording the deed to you, providing a current survey or survey affidavit, and obtaining HOA estoppel or compliance letters when needed.
• Part II: Exceptions. These list items the policy will not cover unless removed or insured over with an endorsement. Examples include recorded easements, covenants, rights of way, mineral reservations, pipeline corridors, and setbacks.

Why it matters: Requirements tell you what must happen for a smooth close. Exceptions tell you what risk stays with the property after closing.

Schedule C: Extra items or survey notes

Some commitments include an additional schedule that flags survey‑based matters or local details. Think of it as an addendum that points out items the insurer wants you to notice or exclude unless resolved. In Montgomery, you might see MUD bond notices, drainage easements, or a recorded pipeline easement crossing the lot. Ask the title officer to read any Schedule C items to you in plain English and explain whether action is needed before closing.

Common Montgomery exceptions explained

Below are entries you are likely to see and what they mean in simple terms.

1. Taxes and special assessments

• Typical entry: Taxes for the current year and subsequent years not yet due and payable.
• What it means: The insurer does not cover unpaid future taxes. You and the seller will prorate current year taxes at closing. Expect references to the county, school district, and any MUD or special district.

2. Mortgages, liens, and judgments

• Typical entry: Any deed of trust or lien recorded against the property.
• What it means: The seller’s loan or any recorded lien must be paid off and released for you to receive clear title.

3. Easements and rights of way

• Typical entry: Easements and setback lines of record.
• What it means: Utilities, pipelines, or roads may have a right to use part of the land. The policy excludes damage from those allowed uses. These are common along FM roads and utility corridors.

4. Plat restrictions and HOA matters

• Typical entry: Recorded subdivision plat, covenants, conditions, and restrictions.
• What it means: The property must follow recorded rules. The policy usually excludes enforcement of those restrictions. If there is an HOA, expect a requirement for an estoppel or status letter.

5. Mineral reservations and oil and gas

• Typical entry: Reservations or conveyances of minerals.
• What it means: Someone else may own part or all of the minerals. The owner’s policy usually does not cover mineral rights or production unless special coverage is added, which is limited. This is frequent in Montgomery County.

6. Survey and encroachments

• Typical entry: Any facts a current, accurate survey would reveal.
• What it means: If a fence, driveway, or structure crosses a boundary, the insurer will exclude that risk unless a survey is provided and an endorsement is issued.

7. Access

• Typical entry: No assurance of legal access.
• What it means: If your land does not directly touch a public road or lacks a recorded easement, the policy may not insure access. Confirm recorded access if the tract sits on a private road.

8. Mechanic’s liens

• Typical entry: Unrecorded liens for labor or materials.
• What it means: Recent construction can lead to contractor claims after closing. The title company may require affidavits, lien waivers, or holdbacks to protect you.

Sample Schedule B entries and what to do

Here is how to respond to three common entries you may see.

• Current year taxes not yet due

  • What it means: Taxes will be prorated at closing, and you are responsible for taxes after closing.
  • What to do: Ask the title company how taxes will be prorated and whether tax certificates are needed. Confirm your lender’s escrow setup if applicable.

• Deed of trust to Seller’s Lender

  • What it means: The seller has a mortgage that must be paid off.
  • What to do: Expect a recorded release after payoff. Ask for the timeline and how the title company handles issuance of your policy once the release is recorded.

• Survey matters

  • What it means: The insurer will exclude boundary and encroachment issues unless a satisfactory survey is provided.
  • What to do: Provide a current survey early. If none exists, order one. Ask about available survey endorsements and cost.

What your owner’s title policy covers

Your owner’s policy insures you against covered title defects up to the policy amount, subject to the commitment’s exceptions and the policy’s conditions. It typically covers things like unknown liens, errors in recorded documents, or someone else claiming ownership prior to your policy date. It does not cover items listed as exceptions, future zoning or use changes, or issues found by a survey if you do not obtain survey coverage. Review what is excluded so you understand the risk you are keeping versus the risk the insurer is taking.

Buyer checklist before closing

Use this quick list to stay organized.

Ask the title company

• Who are the proposed insureds for the owner’s and lender’s policies, and are the names exact?
• What is the effective date? Has anything recorded since then that needs to be added?
• Walk me through Schedule B, Part I. What requirements must be completed, and by when?
• Explain each exception in Part II and any Schedule C items in plain English. Which can be removed or insured over, and how?
• Do you need a current survey? If so, which type and by what date?
• Are there local matters like MUD taxes, HOA fees, or special assessments to plan for?
• Which endorsements are recommended, and what do they cost?

Ask the seller

• Are there any mortgages, liens, judgments, or unpaid contractors?
• Do you have a recent survey, plat, or easement documents?
• Have you paid the current year property taxes? How will prorations be handled?
• If there is an HOA or MUD, can you provide documents or estoppel letters now?

Ask the HOA or district (if applicable)

• Request an estoppel showing assessments, transfer fees, and any violations.
• Ask about pending special assessments or planned projects that may impact costs.

Closing day confirmations

• Seller’s mortgages will be paid and releases recorded promptly.
• How county, school, and special district taxes will be handled is clear.
• Required endorsements are listed on your settlement statement and explained to you.

Two simple scripts

• To the title officer: Please explain the top three items in Schedule B that could delay policy issuance and how each will be cleared.
• To the seller: Do you have lien waivers or final invoices for the recent remodel? The title company asked for mechanic’s lien protections.

How exceptions get cleared

• Payoff and release: Seller’s loan is paid at closing and a release is recorded. Your policy issues after recording.
• HOA and tax items: Estoppel letters, tax receipts, and certificates satisfy related requirements.
• Surveys: A current survey can reduce or remove survey exceptions. Without one, the policy keeps a broad survey exception.
• Mineral matters: Mineral exceptions often remain. Special endorsements are limited and depend on evidence. Ask the title officer and consult a Texas real estate attorney for complex mineral questions.
• Mechanic’s liens: Seller affidavits, lien waivers, or escrow holdbacks protect against later claims.
• Endorsements: Some risks can be insured over for a fee. Availability depends on the specific issue and insurer.
• Timing: Some items record after closing. Ask when you will receive the final owner’s policy after all documents are recorded.

Local steps for Montgomery buyers

• Search recorded deeds, plats, easements, and liens with the Montgomery County Clerk.
• Confirm tax accounts, taxing entities, and exemption history with the Montgomery County appraisal district and the county tax office.
• If the property is in a MUD or other special district, request bond and assessment disclosures early and confirm expected tax impacts.
• For acreage or properties with recent improvements, order a current survey early to catch encroachments or access issues.
• For older rural tracts, review prior deeds for mineral reservations. Ask your title officer to flag any mineral severances that appear in the chain of title.

Work with a local guide

You should not have to untangle title alone. With two decades in Montgomery County real estate and a background in escrow and title, I guide you through each page of the commitment and coordinate with the title officer so you know exactly what is being cleared, what is being insured, and what stays as an exception. If you are weighing a survey decision, dealing with a MUD disclosure, or sorting out mineral reservations, you will have steady, practical advice at each step.

If you want a clean, low‑stress path from contract to close, let’s talk. Book an Appointment with Kristina Davidson to review your title commitment and plan your next move.

FAQs

What is a Texas title commitment for a home purchase?

• It is the title company’s promise to issue a title insurance policy once listed requirements are met, showing what will be insured and which items are excluded.

When do I receive the title commitment in Montgomery, TX?

• After the contract is opened with a title company. It will show an effective date, which is the cutoff for the records searched.

What should I check first on Schedule A of my commitment?

• Confirm your name, policy amounts, the estate being insured, and that the legal description matches the deed or plat for the property you are buying.

What are common Montgomery County exceptions on Schedule B?

• Mineral reservations, utility and pipeline easements, HOA covenants, plat restrictions, and current year taxes not yet due are typical entries.

Do I need a new survey to remove survey exceptions?

• Often yes. A current survey allows the title company to narrow or remove broad survey exceptions and may enable survey endorsements.

How are mineral rights handled in a Texas title policy?

• Mineral interests are commonly excepted. Special endorsements are limited and require evidence. Many mineral exceptions remain after closing.

What is a MUD and why does it show up on my commitment?

• A Municipal Utility District funds infrastructure with property taxes and bonds. If your home is in a MUD, the commitment may reference those obligations.

How are seller mortgages and liens cleared before closing?

• The title company collects payoffs at closing and records releases. Your policy issues after the release is recorded and other requirements are met.

What does the owner’s policy insure and not insure?

• It insures against covered title defects up to the policy amount, subject to listed exceptions and policy conditions. Items shown as exceptions are not covered.

Who can help me interpret my title commitment?

• Your title officer can explain each entry. For complex issues such as minerals, access, or unresolved liens, consider consulting a Texas real estate attorney, and work with a local agent who knows the process.