What are the four schedules of a Texas title commitment?

Schedule A states the facts — proposed insured, policy amount, effective date, estate or interest, and legal description. Schedule B lists the exceptions the policy will not cover. Schedule C lists the requirements that must be satisfied before the policy issues. Schedule D discloses the underwriter, agent, and premium division. They come from the state-promulgated Form T-7 Commitment for Title Insurance adopted by the Texas Department of Insurance.

What is the difference between Schedule B and Schedule C?

Schedule B is exceptions — matters the policy will not cover, like recorded easements and restrictive covenants. Schedule C is requirements — curative items that must be resolved before the policy issues, like releasing a lien or clearing a judgment. The crucial link is that if a Schedule C requirement is not satisfied, the title company may refuse to issue, delay closing, or require the unresolved matter to appear as a Schedule B exception in the final policy, so the buyer may take title subject to it without coverage.

What kinds of items appear on Schedule C?

Curative requirements. Common examples include paying off and releasing an existing deed-of-trust lien, obtaining a release of a judgment or tax lien, curing a break in the chain of title, obtaining a missing signature from an heir or spouse, resolving a probate or estate issue, or recording a corrective deed. These are the conditions the parties must clear so the company will issue a clean policy.

Is a title commitment the same as a title policy?

No. A commitment is a contract to issue a policy subject to its terms and requirements; it is not itself insurance and not an opinion of title. The policy is issued only after the Schedule C requirements are satisfied and the premium is paid. In Texas the commitment is the promulgated Form T-7 and generally expires ninety days from its effective date unless the policy issues sooner or the company is at fault for the delay.

Who sets the form and price of a Texas title commitment?

The Texas Department of Insurance. Texas is a promulgated-form and promulgated-rate state, so the Department adopts the commitment and policy forms and the Commissioner sets premium rates under Chapter 2703 of the Insurance Code, all collected in the Department's Basic Manual of Title Insurance. That is why every Texas commitment shares the same four-schedule structure and why title companies do not compete on price for the basic premium.

What happens if a Schedule C requirement is not met before closing?

The unresolved item generally does not vanish; it may prevent issuance, delay closing, or be carried forward as a Schedule B exception in the issued policy. In that last case the buyer receives title subject to that matter and without title-insurance coverage for it. This is why closings focus so heavily on clearing Schedule C — every requirement left unsatisfied is a risk that shifts from a curable requirement into a permanent, uncovered exception on the buyer's policy.

Texas Title Commitment: Schedules A, B, C & D Explained

TL;DR

A Texas title commitment is the title company's contract to issue a title policy, and it is built from four schedules that examiners love to test because each one does a different job. Because Texas title forms are promulgated by the Texas Department of Insurance and premiums are set by the Commissioner under Chapter 2703 of the Insurance Code, every commitment uses the same standardized Form T-7 structure statewide. Schedule A states the facts: the effective date, the policy amount, the proposed insured, the estate or interest, and the legal description of the land. Schedule B lists the exceptions — the specific matters the policy will not cover, such as recorded easements, restrictive covenants, and the standard area-and-boundary exception. Schedule C is the most misunderstood: it lists the requirements — the curative items that must be satisfied before the policy will issue, such as releasing an existing lien, clearing a judgment, obtaining a missing signature, or resolving a probate gap. Schedule D discloses the underwriter, the title agent, and how the premium is divided. The single most tested distinction is Schedule B versus Schedule C: Schedule B is what the policy excludes, while Schedule C is what you must fix first — and critically, if a Schedule C requirement is not satisfied, the title company may refuse to issue the policy, delay closing, or issue with the unresolved matter carried forward as a Schedule B exception.

Why Texas commitments are standardized

Texas is a promulgated-form and promulgated-rate state for title insurance. The Texas Department of Insurance adopts the forms and the Commissioner sets premium rates under Chapter 2703 of the Insurance Code, and the forms and rules are collected in the Department's Basic Manual of Title Insurance. That is why a title commitment in Houston and one in El Paso share the same skeleton: the four-schedule Form T-7 Commitment for Title Insurance is a state-promulgated form, not something each company designs on its own.

This matters for the exam because it means the schedules are not informal conventions but defined parts of a regulated document. The commitment itself is a contract to issue a policy subject to its terms and requirements; it is not an opinion of title or a guarantee, and it generally expires ninety days from its effective date unless the policy issues sooner. Understanding the commitment as a regulated contract, with each schedule assigned a specific function, is the foundation for the rest of the topic.

Schedules A and B: the facts and the exceptions

Schedule A is the factual heart of the commitment. It identifies the proposed insured, the dollar amount of the policy to be issued, the effective date, the estate or interest being insured (for example, fee simple), the current record owner, and the legal description of the land. Everything else in the commitment is read against Schedule A.

Schedule B lists the exceptions to coverage — matters the title company will not insure against. These include recorded easements, restrictive covenants, mineral reservations, and the standard printed exceptions, among them the area-and-boundary exception covering discrepancies, conflicts, or shortages in area or boundary lines and any encroachments or overlapping improvements. When the policy is later issued, the exceptions that remain appear on Schedule B of the policy. Because a buyer does not get coverage for anything listed as a Schedule B exception, reviewing Schedule B is how a buyer learns what risks the policy leaves on their shoulders. The area-and-boundary exception in particular can be amended with an acceptable survey, which connects to the survey process covered in our guide to the T-47 residential survey affidavit.

Schedule C: the requirements to cure

Schedule C is where the real work of a closing shows up, and it is the schedule test-writers use to separate students who understand the commitment from those who only skimmed it. Schedule C lists the requirements — the things that must be done, produced, or cleared before the company will issue the policy. Typical Schedule C items include releasing or paying off an existing deed-of-trust lien, obtaining a release of a judgment or tax lien, curing a gap in the chain of title, obtaining a missing heir's or spouse's signature, resolving a probate or estate matter, or recording a corrective instrument.

The key concept is that Schedule C is curative and forward-looking: these are conditions the parties must satisfy to close cleanly. If a Schedule C requirement is met, the corresponding cloud on title is resolved and does not burden the policy. If a Schedule C requirement is not met, the unresolved matter does not simply disappear — the title company may refuse to issue the policy, delay closing, or require the matter to appear as a Schedule B exception in the issued policy, meaning the buyer takes title subject to that unresolved problem without coverage for it. This is why understanding Schedule C is really about understanding how title problems get cured or, if not cured, converted into permanent exceptions. Many Schedule C requirements involve clearing liens, which ties directly to the enforcement mechanisms in our guide to nonjudicial foreclosure under Property Code Chapter 51.

Schedule D and how the schedules work together

Schedule D is the disclosure schedule. Required by the Department's procedural rules, it discloses the title insurance company (the underwriter), the title insurance agent, the parties who own the agent, and how the title premium will be divided between the underwriter and the agent. Its purpose is transparency about who is being paid, not coverage.

Put the four together and the commitment tells a complete story: Schedule A says what is being insured and for how much; Schedule B says what the policy will not cover; Schedule C says what must be cured before the policy issues; and Schedule D says who the players are and how the money is split. The relationship between B and C is the analytical core — a requirement on C is either satisfied, or, if it is not, the company may decline to issue, delay closing, or issue with that matter carried forward as a Schedule B exception. Because the commitment is a contract to issue a policy on stated terms, it also connects to the broader documents in a transaction; for how title ultimately transfers once these requirements are met, see our guide to deeds and title transfer.

Frequently Asked Questions

What are the four schedules of a Texas title commitment?: Schedule A states the facts — proposed insured, policy amount, effective date, estate or interest, and legal description. Schedule B lists the exceptions the policy will not cover. Schedule C lists the requirements that must be satisfied before the policy issues. Schedule D discloses the underwriter, agent, and premium division. They come from the state-promulgated Form T-7 Commitment for Title Insurance adopted by the Texas Department of Insurance.
What is the difference between Schedule B and Schedule C?: Schedule B is exceptions — matters the policy will not cover, like recorded easements and restrictive covenants. Schedule C is requirements — curative items that must be resolved before the policy issues, like releasing a lien or clearing a judgment. The crucial link is that if a Schedule C requirement is not satisfied, the title company may refuse to issue, delay closing, or require the unresolved matter to appear as a Schedule B exception in the final policy, so the buyer may take title subject to it without coverage.
What kinds of items appear on Schedule C?: Curative requirements. Common examples include paying off and releasing an existing deed-of-trust lien, obtaining a release of a judgment or tax lien, curing a break in the chain of title, obtaining a missing signature from an heir or spouse, resolving a probate or estate issue, or recording a corrective deed. These are the conditions the parties must clear so the company will issue a clean policy.
Is a title commitment the same as a title policy?: No. A commitment is a contract to issue a policy subject to its terms and requirements; it is not itself insurance and not an opinion of title. The policy is issued only after the Schedule C requirements are satisfied and the premium is paid. In Texas the commitment is the promulgated Form T-7 and generally expires ninety days from its effective date unless the policy issues sooner or the company is at fault for the delay.
Who sets the form and price of a Texas title commitment?: The Texas Department of Insurance. Texas is a promulgated-form and promulgated-rate state, so the Department adopts the commitment and policy forms and the Commissioner sets premium rates under Chapter 2703 of the Insurance Code, all collected in the Department's Basic Manual of Title Insurance. That is why every Texas commitment shares the same four-schedule structure and why title companies do not compete on price for the basic premium.
What happens if a Schedule C requirement is not met before closing?: The unresolved item generally does not vanish; it may prevent issuance, delay closing, or be carried forward as a Schedule B exception in the issued policy. In that last case the buyer receives title subject to that matter and without title-insurance coverage for it. This is why closings focus so heavily on clearing Schedule C — every requirement left unsatisfied is a risk that shifts from a curable requirement into a permanent, uncovered exception on the buyer's policy.

Bottom Line

A Texas title commitment is a state-promulgated contract to issue a title policy, built on the four-schedule Form T-7 adopted by the Texas Department of Insurance, with premiums set by the Commissioner under Chapter 2703 of the Insurance Code. Schedule A states the facts — insured, amount, effective date, estate, legal description. Schedule B lists the exceptions the policy will not cover. Schedule C lists the requirements that must be cured before the policy issues — releasing liens, clearing judgments, fixing chain-of-title gaps, obtaining missing signatures. Schedule D discloses the underwriter, agent, and premium split. The tested core is the B-versus-C relationship: a Schedule C requirement is either satisfied and drops away, or, if unmet, the company may refuse to issue, delay closing, or carry the matter forward as a Schedule B exception on the buyer's policy. The commitment is a contract to issue, not a policy or an opinion of title, and it generally expires in ninety days. For related topics, see our guides to the T-47 survey affidavit, nonjudicial foreclosure, and deeds and title transfer.

Source: Texas Insurance Code Chapter 2703 (promulgated title forms and rates) and the Texas Department of Insurance Basic Manual of Title Insurance (Form T-7 and Procedural Rules). TDI Form T-7 Commitment for Title Insurance · TDI Basic Manual, Section IV — Procedural Rules · Texas Insurance Code Chapter 2703