Quick Answer
Schedule A generally contains core transaction and property information including the proposed insured, policy amount, interest being insured, current vested owner, and legal description. It is the summary page that tells you who, what, and where for the contemplated title insurance policy.
When you receive a title commitment, Schedule A is where you start reading. It is the summary page that captures the essential details of the transaction and the proposed insurance policy. Understanding what each item on Schedule A means helps you verify accuracy and catch potential issues early.
What Information Is Typically Found on Schedule A
While the exact format varies by insurer and jurisdiction, Schedule A typically includes several key pieces of information.
The Effective Date
The effective date is the point in time through which the title insurer's examination of public records is effective. Matters that appear after this date may require an update to the commitment before closing. For more detail, see What Is an Effective Date on a Title Commitment?
The Proposed Insured
The proposed insured is the person or entity that the title insurer expects to insure, provided all requirements are satisfied. Accuracy is critical because the policy will be issued in this name. Learn more about what proposed insured means on a title commitment.
The Proposed Policy Amount
The policy amount typically reflects the purchase price for an owner's policy or the loan amount for a lender's policy. Verify this amount matches your transaction documents.
The Type of Interest Being Insured
This describes the ownership interest being insured, such as fee simple (full ownership) or a leasehold interest. Most residential transactions insure fee simple title, but other interests are possible.
The Current Owner
The current vested owner listed on Schedule A should match the seller in your transaction. If someone else's name appears, it could indicate a chain of title issue. Read why someone else's name may show on the title report.
The Legal Description
The legal description formally identifies the real estate being insured. It is not the same as the street address. Understanding what the legal description tells you is important for property verification.
Why Is Schedule A Important
Schedule A is the first reality check for any transaction. It tells you whether the title company has the right property, the right parties, and the right amounts. Mistakes on Schedule A can lead to closing delays or incorrect policy coverage.
What Should You Check on Schedule A
- Your name (or your entity's name) appears correctly as the proposed insured
- The policy amount matches the purchase price or loan amount
- The property's legal description matches what you expect
- The current owner matches the seller in your contract
- The effective date is recent enough for your closing timeline
Is Schedule A the Same on Every Commitment
No. Different title insurers use different forms, and states may have specific requirements. However, the general categories of information described above are common across most title commitments. Always review the specific commitment you receive.
For a broader understanding of the title commitment and its other parts, read Understanding Schedule B of a Title Commitment and learn about title requirements and title exceptions.
Key Takeaway
Schedule A summarizes the core transaction details: who is being insured, for what amount, covering what interest, on which property, as of what date. Verify every item before proceeding. If something seems off, ask questions early.
FAQs
Is the effective date the same as the closing date?
No. The effective date is when the title search was performed, which is typically before closing. The closing date is when the transaction settles. Learn more about the effective date.
What if my name is wrong on Schedule A?
Contact the title company immediately. A corrected commitment may be needed before closing. Accuracy matters for the final title insurance policy. Read about why proposed insured accuracy matters.
Should buyers review the legal description themselves?
Yes, buyers should at least compare it to what they expect. If the description refers to a different lot or parcel, that is a red flag. Learn why buyers should review the legal description and what to do if the legal description is wrong.