Welcome to VATC’s Online Training page. This is a great place to begin if you need a title insurance tutorial or would like a refresher.
Commitments are issued to the lender and/or buyer (if an Owner policy is being purchased) prior to or at the time of closing. They are issued in advance of the final policy.
The three components of a Commitment are:
The jacket may be printed after a Commitment jacket has been requested.
Contains the buyer, seller, and lender information. The effective date of the Commitment is the date of the title search.
Schedule B, Section I – Requirements
Note: This section must be completed if using the VATC Update Service. The Requirements section contains a list of things that must be done before a final policy can be issued. For example:
- Record a new deed
- Record a new mortgage
- Record discharges for mortgages that are being, or have been, paid off
- Record lien releases
- Record Powers of Attorney
- Record trustee certificate
Tip! Download a list of common Requirements. You can add these to the Phrase Code library in PrepExpress for more efficient Commitment preparation.
Schedule B, Section II – Exceptions
Schedule B, Exceptions contains matters that burden the property and will remain on title, such as easements, rights of way, surveys of record, Declaration of Covenants, etc.
The Property Description should reflect the most recent conveyance of the property.
A Short Form policy is a loan policy, but with added benefit to the lender:
- Issued at closing (before recording has taken place)
- The “gap” period is covered (period between title search and mortgage recording)
- Includes several endorsements required by the secondary market:
-Affirmative Language Endorsement (f/k/a Secondary Market endorsement)
-Variable Rate Endorsement
-Environmental Protection Endorsement
- Perhaps the greatest benefit of the Short Form is that the lender receives the policy at closing which allows the loan to be sold on the secondary market.
Short Form policies may not be issued for leasehold or commercial properties.
Please note that VATC requires a property description and Schedule B, Exceptions (Addendum) with all Short Form policies and a pre-closing update must be conducted within 3 days of closing.
Final Policies (except Short Forms) are issued only after an in-person post-closing update has been conducted, but within 60 days of closing. They may be issued with standard or expanded coverage, depending on the property type.
- Residential 1-4 Family properties (if owner-occupied in one unit)
- Second homes
- Vacant Land
- Commercial property
- Construction loans
- When purchaser is an LLChere