Before closing on vacant land, the buyer's title company issues a title commitment. It is easy to skim, but it is one of the best early windows into what is actually attached to a parcel. Here is how to read one with a buyer's eye.
What a Title Commitment Is
A title commitment is the insurer's written promise to issue a title insurance policy once stated conditions are met. It names the property, the proposed insured, the amount of coverage, and the current record owner, and it lists the items the insurer will exclude or require to be cleaned up.
Requirements vs. Exceptions
Requirements are things that must happen before the policy issues, such as paying off a mortgage, recording a deed, or resolving an unpaid lien. Exceptions are matters the policy will not cover, such as recorded easements, restrictions, or rights of others. Buyers should read both lists line by line.
Easements and Restrictions on Vacant Land
On vacant land, exceptions often include utility easements, access or drainage easements, and recorded deed restrictions. Each one can limit where a house, driveway, or septic system can go, so ask for copies of the recorded documents and compare them to the survey.
Liens, Taxes, and Open Items
Look for unpaid property taxes, municipal liens, judgments, or old mortgages that were never discharged. Many are routine to clear at closing, but surprises are far easier to handle early than at the table.
Matching the Commitment to the Survey
A survey can show things a record search cannot, such as encroachments or the true location of an easement. Review the commitment and survey together, and ask your attorney which exceptions can be removed or insured over.
Questions to Bring to Your Attorney
Which exceptions affect where I can build? Are any restrictions still enforceable? Is there an easement across the parcel for neighbors or utilities? Is access to a public road clearly documented? Your attorney and title company are the right people to answer these for your specific parcel.
This article is general educational information, not legal, tax, or engineering advice. Rules vary by municipality and change over time, so confirm details with the appropriate local officials and your own professionals.