Schedule B of a Title Commitment lists exceptions to, or things that will not be covered by, the Title Policy. Much of the language on Schedule B is promulgated by the Texas Department of Insurance and are standardized exceptions to title insurance coverage. Specific exceptions to the property being insured are typically listed under item number 1 and item number 10 on Schedule B.
Item number 1 on Schedule B shows the recording information for deed restrictions and other restrictive covenants that are applicable to the property. Deed restrictions can be found on the map or plat that established the neighborhood where the property is located, as well as in subsequent documents pertaining to the neighborhood or that are specific to the property and that are recorded in the Real Property Records. These restrictions may, among other things, establish building set-back lines and easements, establish a homeowners’ association, require the payment of dues and/or maintenance charges, limit the use of the property, or set architectural guidelines for structures built on the property.
Schedule B, item 10 typically sets out any specific exceptions that are applicable to the property. The exceptions set out under item 10 may refer back to the recording information contained in item 1, or may refer to additional documents. The title company will also review the current survey of the property and may make additional exceptions based on the review of the survey. Ownership of minerals is typically an exception to the title policy and will appear on Schedule B as well.