Next, a discussion of Schedule B; in particular Schedule B-I:

Schedule B-I immediately follows Schedule A. In this Schedule, the title examiner discloses particular requirements that must be satisfied before the underwriter will issue its policy. Now I would like to pose a question: Why do we have title examiners? Is it so we can create new jobs and keep people off the streets? The obvious answer is no. The responsibility of the examiner is twofold: First, it is to protect his title agency and, by definition, the agency's underwriter, from liability. Second, it is to establish marketable title in the subject property, thereby properly serving the property owner or lender.

For the sake of clarity, I will bifurcate Schedule B-I. These segments will be labeled Schedule B-Ia and Schedule B-Ib, respectively. In Schedule B-Ia, the examiner will set forth the basic requirements that the owner or lender must fulfill. The basic requirements consist of deed and mortgage execution. For example, in a purchase transaction, the first requirement may call for the execution of a deed from the seller to the buyer. The next requirement may call for the execution of the purchase money mortgage from the buyer.

Property transactions can have unbelievable dimensions, but for the purpose of this discussion, the two most common transactions are (1) the sale with a corresponding purchase money mortgage transaction, and (2) the refinance transaction. Schedule B-Ia disposes of the easy requirements first. These requirements will be expected and understood by all parties.

Schedule B-Ib is where the examiner cleans up the title. Common problems include federal tax liens, tax forfeitures, foreclosure proceedings, and divorce proceedings, just to name some. These problems fall within the gambit of Schedule B-Ib, because they are not formality requirements, such as the execution of a deed or mortgage; they are complex requirements that must be drafted with skill. Schedule B-Ib is where the talented examiner can display his or her skill.

My goal, as an examiner, is to create marketable title relative to the particular transaction. I create marketable title through the drafting of the commitment. The commitment is my instrument of communication. It is important for the reader to understand that a good title examiner is essential to a property transaction. Disclosing title problems and correcting these problems, prior to closing, will enable all parties of a transaction to get a good night sleep. The parties will not have to fear being named a defendant in a lawsuit. Now, I understand that perfect title to property can never be guaranteed. That is because there are many circumstances, such as nondisclosure, that may cause problems subsequent to the date of closing. That being said, an expert examiner will greatly reduce the element of surprise for the new home owner or lender. After all the requirements of Schedule B-I have been complied with, the parties may schedule a closing.

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