Title Commitment Illinois Real Estate Guide

A title commitment Illinois real estate file is the title company's written offer to insure the property, not proof that the title is already clean. It names the proposed insured, the dollar amount, the current owner of record, and the legal description. It also lists what must happen before a policy will be issued, and which recorded matters the policy will not cover. Read it before closing. There is still time then to clear a lien, correct a name, or match the description to the contract.

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What a title commitment is, and what it is not

Title insurance in Illinois is a regulated product. Under the Title Insurance Act, 215 ILCS 155/3(1.5), it insures an owner or a lienholder against loss from liens, encumbrances, or defects in title. It also covers title that cannot be sold. The Illinois Department of Financial and Professional Regulation licenses the companies and registers the agents who issue those policies. An attorney's opinion of title is a different document. The statute does not treat that opinion as title insurance.

The paper you see before closing is usually an ALTA commitment. The 2021 ALTA form says, on its face, that it is an offer to issue one or more title insurance policies. It also says it is not an abstract of title, not a report on the condition of title, and not a legal opinion.

The company's promise runs to the proposed insured named in Schedule A, and only on the terms of that commitment. The search behind it is the company's own underwriting work. It does not create a separate duty to everyone who happens to read the file.

That distinction matters on a self-directed sale. The commitment is useful because it shows what the insurer found and what it is willing to cover. It is not a guarantee that every problem has already been fixed, and it is not a substitute for reading the contract. The owner's policy, if one is issued, comes after closing. Until then, the commitment can still be revised.

Two policies often sit on the same commitment. An owner's policy protects the buyer after the deed is recorded. A loan policy, sometimes called a mortgage policy, protects only the lender. The Illinois State Bar Association's home-buying guide is direct about this: the loan policy does not take the place of the owner's policy.

In most Illinois communities the seller customarily provides the owner's policy, and the contract should say so. The buyer customarily pays for the loan policy the lender requires. Custom is not the same as a statute. If the contract is silent, do not assume which party pays.

What a title commitment Illinois real estate file includes

A current ALTA commitment has a notice, a promise to issue the policy, and the commitment conditions. It then has Schedule A, Schedule B Part I for requirements, and Schedule B Part II for exceptions. Some Illinois commitments still label the exceptions as Schedule B and the requirements as Schedule C. The labels change. The jobs of those sections do not. If your file uses Schedule C, read it as the requirements list, not as a third category of coverage.

Schedule A is the cover sheet of the deal the insurer is willing to make. Check four items against the contract before you look at anything else.

• Commitment date. The offer is effective as of this date, and only if Schedule A also states a dollar amount and a proposed insured. Anything recorded after that date is outside this version of the search.
• Proposed insured and policy amount. For an owner's policy, the proposed insured should be the buyer, in the same name that will appear on the deed. The amount is usually the purchase price. For a loan policy, the proposed insured is the lender, and the amount tracks the loan.
• Vesting. This is the current owner of record. That name should match the seller who signed the contract. A trust, an estate, a deceased spouse, or a former name is a problem to solve before the deed is signed, not a detail to tidy up at the table.
• Legal description. This is the land the policy will cover. It should match the contract and the survey. A street address is not a legal description. A lot and block that points at the neighbor's parcel is.

Schedule B, Part I is the to-do list. These items are not permanent holes in coverage. They are what the company needs before it will issue the policy. Typical requirements include a deed from the people who hold title, a mortgage payoff and release, and payment of taxes that are due. Affidavits about recent work on the property are common too. If the seller is a trust, an estate, or a company, the commitment will also ask for proof that the signer has authority.

On the 2021 ALTA form, if the requirements are not met within 180 days after the commitment date, that commitment terminates. Treat 180 days as a term printed on that form, not as an Illinois statute and not as your contract deadline. Your contract's closing date controls the sale. The title company's expiration date controls only its offer to insure. Ask for an updated commitment if weeks pass between the first issue date and the closing.

Schedule B, Part II is the exceptions list. These are matters the policy will not cover. They are often already of record, and they will still affect the land after closing. Easements, building lines, subdivision restrictions, a condominium declaration, an unreleased mortgage, a judgment, and unpaid taxes show up here.

Standard printed exceptions are different from those specific items. They often exclude parties in possession, matters a current survey would show, and unrecorded mechanics' liens. A survey, an affidavit, or an endorsement can narrow some of those printed exceptions. None of that is automatic. If a buyer needs a specific exception removed, the contract has to allow the objection, and the title company has to agree.

What sellers and buyers should question

The same pages answer different questions depending on which side of the table you are on. A seller is looking for items that can delay the deed. A buyer is looking for items that will still burden the property after the deed is recorded. The table below is a reading order, not a legal opinion on any file.

A few patterns cause most of the last-minute delays.

• A mortgage that is paid off but still of record. The requirement is a release, not a payoff statement alone. If the old lender is slow, order the release as soon as the commitment arrives.
• Unpaid or unprorated taxes. Illinois property tax bills often cover a prior year. The commitment will not calculate your proration. It will flag taxes that are open. Match that flag to the closing statement.
• A judgment or a lien against a similar name. Sometimes it is the seller. Sometimes it is a different person. The title company will not drop it on a verbal assurance. An affidavit or a release is the usual path.
• An easement the buyer did not expect. A utility easement along the rear lot line is common. A driveway easement that lets a neighbor cross the yard is a different conversation. The commitment lists it. The survey shows where it sits. Read them together.
• A name that does not match. A married name, a middle initial, or a trust name that differs from the contract has to be reconciled in the deed. Do this when the commitment arrives, not when the closer is printing packages.

Many printed offers already say the buyer will take the property subject to easements, covenants, and restrictions of record. The Illinois State Bar Association flags that sentence for a reason. If you signed it, you may already have agreed to accept what Schedule B later reveals. That is a contract issue. Only a lawyer can say whether you can still object.

Illinois does not require a seller or a buyer to hire an attorney. Using one is the local custom. Only a lawyer can revise the contract or tell you what a specific exception means for your title. RealPath does not do that work.

One recorded item deserves a separate sentence. Some older covenants discriminate by race or another protected class. Those provisions are unenforceable. They are not a description of the neighborhood, and they are not a reason to treat any buyer differently. Fair housing law still governs how you advertise and how you respond to inquiries.

When the commitment arrives in a self-directed sale

On a typical Illinois sale the title order goes in after the contract is signed. The commitment follows once the company has searched the public records. Build the review into the days after attorney approval, not into the morning of closing. A seller who is handling showings and paperwork without an agent can still keep this step short.

1. Order title as soon as the contract is signed, and name the company in the contract if you have already chosen one.
2. When the commitment arrives, compare Schedule A with the contract: seller's name, buyer's name, price, and legal description.
3. Mark every requirement that needs a third party, such as a mortgage payoff or a trust certificate. Those take longer than a signature.
4. Send specific exceptions to the buyer, or to the buyer's attorney, with the survey. Do not wait to see if someone else notices a shared driveway.
5. Ask the title company to update the commitment a few days before closing so new judgments or tax items are not a surprise at the table.
6. At closing, keep the marked-up commitment with the deed packet. The policy itself is issued after recording, and it should match the commitment as it was finally approved.

The commitment does not replace the rest of the sale file. Sellers still complete the Illinois disclosure packet before a buyer signs. Buyers still decide on inspection, financing, and closing logistics.

If you are selling without a listing agent, the sequence from price to recorded deed is in the guide to how to sell your home by owner in Illinois. Title charges are one line among several seller costs, separate from transfer tax. That bill is covered in the guide to the cost to sell a house in Illinois. Where the papers get signed, including a remote closing, is a different question from what the commitment says. That step is covered in the note on an Illinois remote real estate closing.

Buyers who are not using a buyer's agent still need this document. The commitment is how you learn whether the seller can convey the parcel you think you are buying. The broader path, from first contact through due diligence, is in the guide to buying a house without a realtor in Illinois.

Sign Up Free and use RealPath to track the offer, the messages, and the documents that have to match this commitment. A free account includes property search, a listing, buyer messages, and an offer and document workflow. RealPath is not a title company, a broker, a lender, or your lawyer. Licensed title work and legal advice, if you want them, come from people you hire separately.

Frequently asked questions

What does a title commitment show in an Illinois home sale?

It shows the owner of record, the legal description, the proposed insured, and the policy amount. It also lists the requirements that must be finished before a policy is issued, and the exceptions the policy will not cover. It is an offer to insure, not the policy and not a legal opinion.

Is a title commitment the same as an owner's title policy?

No. The commitment comes before closing and can be revised. The owner's policy is issued after closing and is the insurance contract. A loan policy issued to the lender does not insure the buyer.

Who reviews the title commitment if I am not using an agent?

You can read Schedules A and B yourself and compare them with the contract and the survey. In Illinois it is customary for a real estate attorney to examine the commitment and require the seller to clear items the contract does not allow. Hiring that attorney is a choice, not a statewide legal requirement. RealPath does not review title or give legal advice.

Can a seller remove an exception before closing?

Some items are requirements and are meant to be cleared, such as a mortgage that will be paid at closing. True exceptions, such as a recorded utility easement, usually stay with the land. Whether a buyer can object depends on the contract. Ask the title company what it is willing to insure, and ask a lawyer what the contract lets you demand.

How long is an Illinois title commitment good for?

The 2021 ALTA form says the commitment ends if its requirements are not met within 180 days after the commitment date. Your form may differ, and your purchase contract has its own closing deadline. Ask the title company to update the commitment shortly before closing rather than relying on the first issue date.