Title Commitment Exceptions Review
When a title commitment arrives during the due diligence period and you need to disposition every exception and get objections out before the contract deadline.
A title commitment is where a real estate deal's hidden problems surface: unreleased liens, easements that run through the planned building pad, use restrictions, and requirements that someone has to satisfy before closing. Each exception needs a decision, and the decisions have to reach the title company and seller before the contract's objection deadline. Done under time pressure, it is easy to accept an exception that later blocks financing or the client's intended use.
The prompt gives Claude the commitment, any recorded exception documents and the deal context: who you represent, the property, the intended use, survey status and the objection deadline. Claude checks Schedule A against the deal, lists each requirement with the responsible party, and builds a table that quotes every exception and assigns a disposition: accept, request deletion, request endorsement or affirmative coverage, needs survey review, or needs document review. It then drafts the objection letter.
Claude cannot see recorded documents you do not provide, cannot read a survey it has not been given, and does not know local title practice. The prompt keeps state-specific practice as placeholders and tells Claude not to guess what an unprovided document says. The attorney should review the underlying documents, confirm endorsement availability with the title company, and make the final call on each disposition before the letter goes out.
The Prompt
<title_commitment> [PASTE THE TITLE COMMITMENT: SCHEDULE A, REQUIREMENTS, AND EXCEPTIONS] </title_commitment> <exception_documents> [OPTIONAL: PASTE TEXT OF RECORDED DOCUMENTS LISTED AS EXCEPTIONS, LABELED BY EXCEPTION NUMBER] </exception_documents> <survey_and_deal> We represent: [BUYER / LENDER / SELLER] Property: [ADDRESS AND PROPERTY TYPE] Intended use and plans: [e.g., redevelop as medical office; add parking] Survey status: [ORDERED / RECEIVED (PASTE NOTES) / NOT ORDERED] Contract objection deadline: [DATE AND SECTION OF PURCHASE AGREEMENT] Title company and contact: [NAME] Jurisdiction: [STATE AND COUNTY] </survey_and_deal> Review the commitment for our client. Part 1. Schedule A check: confirm the proposed insured, amount, estate or interest, vesting and legal description, and flag anything that does not match the deal described above. Part 2. Requirements: list each requirement, quote it, and say who must satisfy it (buyer, seller, lender, title company) and what document is needed. Part 3. Exceptions table: Exception # | Quote | Type (standard, lien, easement, restriction, agreement, survey, other) | Disposition | Reason | Action. Dispositions: Accept / Request deletion / Request endorsement or affirmative coverage / Needs survey review / Needs document review (if the recorded document was not provided). Consider whether each exception could interfere with the intended use. Do not assume what an unprovided recorded document says. Part 4. Draft an objection letter to [SELLER] and the title company, referencing the contract objection deadline, listing each objection and requested cure, and stating the notice method and addresses the purchase agreement requires. Leave state-specific practice (which endorsements are available, standard-exception deletion practice, recording and payoff procedures) as [JURISDICTION] placeholders unless it appears in the pasted text. This is a draft for attorney review; confirm availability of any endorsement with the title company.
Example Output
A Schedule A check, a requirements list by responsible party, a quoted exceptions table with dispositions and actions, and a draft objection letter tied to the contract deadline.
Illustrative example — names, figures, and facts are fictional.
TITLE COMMITMENT REVIEW (DRAFT) Property: 1270 Quarry Ridge Rd (fictional), vacant land | We represent: Buyer, Pell Street Partners LLC Intended use: Medical office building with surface parking | Objection deadline: [DATE] (PSA Sec. 6.2) PART 1. SCHEDULE A - Proposed insured: "Pell Street Partners, LLC" (comma). Contract buyer is "Pell Street Partners LLC." Request correction. - Amount: $2,150,000, matches purchase price. - Vesting: Fieldstone Holdings Trust. Seller under the PSA is Fieldstone Holdings LLC. MISMATCH: confirm seller entity and chain. PART 2. REQUIREMENTS R-3: "Release of Mortgage recorded as Instrument No. [NUMBER]." Seller. Payoff letter and recorded release. R-5: "Proof of authority of the Trustee." Seller. Trust certification per [JURISDICTION] practice. PART 3. EXCEPTIONS # | Quote | Type | Disposition | Reason | Action 1 | "Rights or claims of parties in possession not shown by the public records" | Standard | Request deletion | Vacant land | Owner's affidavit per [JURISDICTION] practice 2 | "Easement granted to County Power Cooperative recorded [DATE]" | Easement | Needs survey review | Location unknown; could cross building area | Plot on survey 3 | "Declaration of Restrictions recorded [DATE]" | Restriction | Needs document review | Not provided; could limit medical use | Obtain recorded copy 4 | "Taxes for the year [YEAR], a lien not yet due and payable" | Standard | Accept | Customary | None 5 | "Any facts that an accurate survey would disclose" | Survey | Request deletion or limitation to survey matters | Survey ordered | Provide survey to title PART 4. OBJECTION LETTER [DATE] Re: Commitment No. [NUMBER], 1270 Quarry Ridge Rd Delivered to Seller per Section [NOTICE SECTION], with a copy to the title company. Pursuant to Section 6.2 of the Purchase and Sale Agreement, Buyer objects as follows: 1. Schedule A vesting and proposed insured must be corrected as described above. 2. Exception 1: delete upon delivery of owner's affidavit. 3. Exceptions 2 and 3: Buyer objects pending review of the survey and the recorded Declaration, so that no deemed approval occurs. Please provide a copy of the Declaration. 4. Exception 5: delete, or limit to specific matters shown on the survey, upon receipt of survey, with [ENDORSEMENTS PER JURISDICTION]. Buyer reserves all rights under the Agreement. Draft for attorney review.
Tips
- •Paste the recorded exception documents whenever you have them. If they will not arrive before the deadline, object anyway rather than risk deemed approval. Without them, Claude can only mark an easement or restriction for document review.
- •Include the intended use. An exception that is harmless for a hold-and-lease deal can block a redevelopment.
- •Send the survey notes when they arrive and rerun Part 3 for any exception marked 'Needs survey review.'
- •Confirm endorsement availability and pricing with the title company. Practice varies by state, so the prompt leaves those details as placeholders.
- •Treat the objection letter as a draft for attorney review, and calendar the objection deadline from the purchase agreement, not from the commitment.
Frequently Asked Questions
Can Claude tell me what an easement or restriction says if I only paste the commitment?
No. The commitment usually just identifies the recorded document. The prompt tells Claude to mark those exceptions 'Needs document review' rather than guessing at their content. Obtain the recorded documents from the title company and paste them in the exception documents tag, labeled by exception number, so Claude can quote and assess them against the intended use.
Why does the prompt leave endorsements as placeholders?
Endorsement availability, forms and pricing vary by state and title underwriter, and some states regulate them closely. Rather than have Claude name an endorsement that may not be available, the prompt flags where coverage could help and leaves the specific form for you to confirm with the title company. Paste a list of endorsements available in your state if you want them referenced.
Does this replace reviewing the survey?
No. Several exceptions can only be evaluated against the survey, and Claude cannot plot an easement or check encroachments from the commitment alone. When the survey arrives, paste the surveyor's notes and table of exceptions and rerun Part 3 for the exceptions marked for survey review. The attorney should still review the survey drawing itself.
Can I use it when representing a lender?
Yes. Set the represented party to lender and describe the loan. The Schedule A check will focus on the proposed insured lender and loan amount, and dispositions will reflect lender concerns such as priority and the endorsements the loan commitment requires. Paste the lender's title requirements so Claude can check the commitment against them.
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