Utah FSBO Title Commitment Review: What Sellers Need to Understand

When you're selling your Utah home without a real estate agent, you'll receive a document from the title company a few weeks before closing called a title commitment. For most FSBO sellers, it's the most misunderstood paperwork in the entire transaction — and missing what it says can derail a deal at the worst possible moment. Understanding your Utah FSBO title commitment review process puts you back in control.

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What Is a Title Commitment?

A title commitment (also called a preliminary title report or title binder) is the title company's promise to issue a title insurance policy once certain conditions are met. It's not a final policy — it's the underwriter saying, "Here's what we found in the public record, and here's what we'll cover once these items are resolved."

In Utah, title commitments follow a standard format required by the Utah Insurance Code and typically include:

• Schedule A — Basic transaction details: sale price, property description, who the insured parties are, and the type of coverage (lender's policy, owner's policy, or both)
• Schedule B-I — Requirements that must be satisfied before closing
• Schedule B-II — Exceptions that the title insurance policy will not cover

Both schedules deserve careful reading. Most FSBO sellers scan Schedule A and ignore everything else. That's a mistake.

Reading Schedule B-I: Requirements

Schedule B-I lists what the title company needs before they'll insure the transaction. Common requirements in Utah FSBO closings include:

• Payoff of existing mortgage(s): If you have a lien from your lender, it must be paid at closing and a reconveyance recorded. The title company will order a payoff statement directly from your lender.
• Payment of delinquent property taxes: Utah county treasurers report delinquent taxes to title companies. Salt Lake County, Utah County, and Davis County all have searchable tax records that title companies review during the search process.
• Release of judgment liens: If a creditor has filed a judgment against you in Utah's courts, that lien attaches to any real property you own in the same county. It must be paid or released before transfer.
• HOA estoppel and payoff: For homes in homeowners associations — common across the Wasatch Front — the title company will require confirmation that dues are current.
• Execution of warranty deed: You'll need to sign the deed that conveys title to the buyer.

Review these requirements early. Some items, like judgment liens or disputed HOA balances, can take weeks to resolve.

Reading Schedule B-II: Exceptions

Schedule B-II lists what the title policy will not cover. These exceptions follow you to the buyer's ownership and can affect how they use or sell the property later. Common exceptions in Utah:

• Easements: Utility easements are near-universal in Utah. You may have a Rocky Mountain Power or Questar/Dominion Energy easement running through your backyard. More unusual are access easements for neighbors — if a neighbor has a recorded right to cross your land, it shows up here.
• CC&Rs and HOA restrictions: Most subdivisions across Utah County, Salt Lake County, and beyond have Covenants, Conditions, and Restrictions recorded against the plat. The title policy won't insure against them — they run with the land regardless.
• Mineral rights reservations: In many parts of Utah — particularly rural properties in San Juan County, Uintah County, and Carbon County — prior owners reserved mineral rights when selling the surface. This is a common exception worth flagging to your buyer.
• Water rights: Unlike most western states, Utah's water law is complex. The title commitment will typically except matters relating to water rights because they're adjudicated through the Utah Division of Water Rights, not the county recorder.

None of these exceptions are emergencies — but your buyer (and their lender) will review them. Being prepared to explain what these exceptions mean shows buyers you understand what you're selling.

What to Do When You Receive Your Title Commitment

As a FSBO seller in Utah, here's the practical checklist:

1. Read it the same day you receive it. You're usually on a tight closing timeline — 21 to 30 days from contract execution. The earlier you spot issues, the more time you have.
2. Compare Schedule B-I to your contract deadlines. If the commitment requires a judgment lien release and you have 20 days to closing, call the creditor immediately to start the payoff process.
3. Flag unexpected exceptions for your buyer. If there's an easement or encroachment the buyer wasn't told about, disclose it proactively. Under Utah's seller disclosure requirements, known title conditions must be disclosed.
4. Ask the title company to explain anything unclear. Utah title companies — including RH Title — are used to explaining commitment language to FSBO sellers. They want the deal to close cleanly too.

When Title Issues Are More Serious

Occasionally, a title search uncovers a genuine problem: a missing heir from an old chain of title, a break in ownership from a foreclosure, or a recorded notice of default that was never resolved. These are called clouds on title.

Serious title defects can delay or kill your closing entirely. If the title company won't commit to coverage, buyers aren't obligated to proceed — and in Utah, the REPC gives them grounds to terminate and recover their earnest money. If your title commitment shows a significant defect, you'll likely need an attorney to help resolve it before you can close.

For a deeper look at the search process that produces the commitment, see Utah FSBO Title Search: What It Is and Why It Matters.

The Bottom Line

Your title commitment is the paper trail of your property's ownership history. It tells you what has to happen before closing and what your buyer is accepting about the property. FSBO sellers who review it carefully close faster and encounter fewer last-minute surprises. Those who ignore it until the week of closing sometimes find themselves scrambling.

If you have questions about a specific item on your title commitment, or if a title defect is threatening to kill your sale, get professional guidance before it becomes a crisis.

Ready to get started? Tyler offers a free 15-minute consultation — schedule yours at utahfsbohelp.com/contact.