Commercial Title Insurance Commitments, Schedule B Exceptions, and Essential Endorsements

Schedule A: Core Transaction Terms

• Policy Amount: Must equal the maximum principal loan amount approved by credit committee.
• Named Insured: Must name the Lender, its successors and/or assigns as their interests may appear.
• Estate Insured: Fee simple, leasehold estate, or easement interest.
• Legal Description: Must match the recorded deed and certified ALTA survey verbatim.

Schedule B-1: Requirements for Closing

Schedule B-1 enumerates all actions that must occur prior to policy issuance, including payoff and release of existing deeds of trust, payment of delinquent property taxes, verification of borrower corporate good standing, and execution of closing affidavits.

Schedule B-2: Exceptions from Coverage

Schedule B-2 lists encumbrances that the title company refuses to insure against. Lenders require title counsel to review every item, demanding the removal of unrecorded easements, mechanic's lien exceptions, and open-ended blanket encumbrances.

Top Lender Endorsements

• ALTA 9-06 (Comprehensive / Restrictions, Encroachments, Minerals): Protects against loss resulting from violation of covenants, setback encroachments, or subsurface mineral extraction damage.
• ALTA 25-06 (Same as Survey): Affirms that the land described in Schedule A is identical to the parcel depicted on the certified ALTA survey.
• ALTA 17-06 (Access and Entry): Insures that the property has direct vehicular access to a publicly dedicated street.
• ALTA 3.1-06 (Zoning - Completed Structure): Insures against loss if the existing use violates municipal zoning ordinances or if structures violate setback, height, or floor area ratios.
• ALTA 8.2-06 (Commercial Environmental Protection Lien): Insures that no federal or state environmental super-lien takes priority over the mortgage.