Title Commitment and Survey Review in Illinois Real Estate

Two documents that show what you are actually buying

In an Illinois real estate transaction, two documents test what the contract promises. The title commitment says who owns the property and which claims against it will survive the closing. The survey shows where the land is and what sits on it. Buyers and sellers who read both early, and object on time, close without surprises. Those who do not inherit the problems.

This article is the review a closing attorney does in every transaction, residential or commercial. Read early, the two documents confirm that the contract description matches the land on the ground, surface liens and gaps in the chain of title, and let the buyer object while the seller still has to fix the problem instead of litigating afterwards. Our page for home buyers covers the rest of a purchase, from attorney review to the closing table, and the real estate hub covers the firm's real estate work generally.

Reading the title commitment: Schedules A, B and C

Title insurance in Illinois is regulated by the Title Insurance Act (215 ILCS 155), which defines it as insurance against loss from liens, encumbrances, defects in, or the unmarketability of title to property (215 ILCS 155/3(1.5)). Before the policy is issued, the title company searches the public records and issues a commitment for title insurance: a preliminary document stating the terms on which it will insure. It details:

• The current legal owner of the property
• The legal description to be insured
• The requirements that must be satisfied before the policy issues
• The exceptions to coverage, such as easements and restrictions, that the policy will not insure against

Schedule A

Lists the proposed insured, the policy amount, the current owner of record, and the legal description. Check that the description matches the contract and the survey, and that the seller named here is the person who signed the contract.

Schedule B

Lists the exceptions: matters the policy will not cover because they exist of record and will survive closing. Easements, building lines, restrictive covenants, condominium declarations, unreleased mortgages, judgment liens and unpaid taxes appear here. Everything on this schedule is something you will own subject to, unless it is removed before closing.

Schedule C

Lists the requirements the title company needs before it will issue the policy: releases of existing mortgages, payment of taxes, a deed from the correct parties, affidavits, corporate or trust documents. Some Illinois commitments put the requirements in Schedule B, Part I and the exceptions in Schedule B, Part II; the content is the same.

Review the commitment as soon as it arrives and raise any objection within the deadline the contract sets. Under the Multi-Board Residential Real Estate Contract 8.0 used across Chicago and the suburbs, the seller delivers a commitment for an owner's policy with extended coverage in the amount of the purchase price (paragraph 20). Extended coverage removes the "standard exceptions" for matters an inspection or survey would reveal, which is why the title company wants the survey too. Objections not raised on time are waived, and the defect becomes yours.

The plat of survey

A survey maps the property's boundaries and what is on them. A typical Illinois plat of survey shows:

• The boundaries and their dimensions
• The location of buildings, fences, driveways and other improvements
• Easements and rights-of-way affecting the parcel
• Encroachments from or onto neighboring land
• Flood zone information, where applicable

For a house or townhome, the Multi-Board contract requires the seller to deliver a plat of survey dated within six months of closing, showing the improvements and any encroachments, for anything other than a condominium (paragraph 21). A survey older than that, or one prepared for the seller's own purchase years ago, does not satisfy the contract and may not satisfy the lender.

Commercial property and ALTA/NSPS surveys

For commercial transactions, lenders and title companies usually require an ALTA/NSPS Land Title Survey, prepared under the Minimum Standard Detail Requirements adopted by the American Land Title Association and the National Society of Professional Surveyors. The current standards took effect February 23, 2021. An ALTA survey shows:

• Boundaries and improvements, tied to the recorded legal description
• Easements, access points and visible utilities, including utility locate markings
• Encroachments, setback lines and possible zoning issues

The optional "Table A" items (parking counts, flood zone, zoning information, contours) are negotiated between buyer, lender and surveyor before the work begins, and the survey is certified to the buyer, the lender and the title company. Our commercial contract review article covers where the survey fits in a commercial due diligence period.

Common title and survey issues in Illinois

One rule explains why recording matters so much. Under the Conveyances Act, a deed or mortgage takes effect as to creditors and later purchasers without notice only from the time it is filed for record (765 ILCS 5/30). The deed is recorded with the Cook County Clerk at closing for that reason, and an unrecorded prior deed or a mortgage release that was never recorded is a title problem rather than a curiosity.

Title issues

• Gaps in the chain of title, where a past transfer is missing or defective
• Unreleased mortgages or liens, often paid years ago but never released of record
• Judgment liens against current or prior owners, including liens against someone with a similar name
• Easements and restrictive covenants that limit use
• Boundary disputes and errors in the legal description
• Unpaid property taxes, or a tax sale that was never redeemed

Survey issues

• Encroachments onto neighboring land: fences, driveways, garages
• Improvements built over easements
• Discrepancies between the survey and the recorded description
• Access problems or landlocked parcels
• Setback or zoning violations affecting the legal use

The title objection process

If the review turns up problems, the buyer's attorney sends a title objection letter to the seller within the contract deadline. It sets out:

• Schedule A concerns, such as the vesting deed or the legal description
• Schedule B exceptions the buyer will not accept
• Schedule C requirements the seller must satisfy before closing
• Survey corrections needed: boundary issues, encroachments, missing certifications
• Requests for additional title endorsements

The seller responds with a letter stating how each item will be cured or why it will not be. Under the Multi-Board contract the seller must have an unpermitted exception removed, or have the title insurer commit to insure over it, before closing (paragraph 20). If the seller does neither, the buyer may take title as it then is, deducting any encumbrance of a definite amount from the price, or treat the failure to deliver merchantable title as the seller's default. The usual cures are in the table below.

Practical steps for buyers and sellers

For buyers

• Review the title commitment and survey the week they arrive, not the week of closing
• Raise objections by the contract deadline
• Ask for endorsements where the risk warrants them
• Have the survey certified to you, your lender and the title company
• Confirm the deed's legal description matches the survey and the commitment
• Buy the owner's policy; the lender's policy protects only the lender
• Decide how you will hold title (sole name, joint tenancy, tenancy by the entirety for a married couple's home, or a trust) before the deed is drafted

For sellers

• Resolve known title issues before listing; a stale mortgage release found at closing delays everyone
• Give the buyer any existing survey and prior title policy; the prior policy may lower the premium
• Expect reasonable objections and budget time to cure them
• Know which defects the contract obliges you to fix
• Tell your attorney about any boundary disagreement, shared driveway or unrecorded agreement with a neighbor

Common problems and their resolutions

What the real estate attorney does

An Illinois real estate attorney:

• Reads the commitment and survey for risks the summary page does not show
• Drafts the title objection letter and reviews the seller's response
• Negotiates cures, escrows and endorsements
• Advises on how title should be held, and prepares the deed accordingly
• Checks the title company's charges and the recording fees on the settlement statement

A quitclaim deed somewhere in the chain of title is one example of why this review matters: the buyer can still insure, but the underwriter will examine that transfer from scratch. Our quitclaim deed guide explains why.

Frequently asked questions

What is a title commitment in Illinois?

The title company's written offer to insure the title, issued after its search of the public records. Schedule A describes the insured, the property and the owner; Schedule B lists the exceptions the policy will not cover; the requirements schedule lists what must happen before the policy issues.

Do I need a survey to buy a house in Illinois?

The standard residential contract requires the seller to deliver a plat of survey dated within six months of closing for anything other than a condominium, and lenders and title companies rely on it for extended coverage. A buyer paying cash can waive it, and should not.

What is the difference between a plat of survey and an ALTA survey?

A plat of survey shows boundaries, improvements and encroachments for a residential closing. An ALTA/NSPS survey follows national minimum standards, ties every recorded easement and exception to the ground, and includes negotiated Table A items; it is the commercial standard.

What happens if the seller cannot clear a title objection?

The contract governs. Under Multi-Board 8.0, paragraph 20, the seller must have the exception removed, or have the title insurer commit to insure over it, before closing. If the seller fails to do either, the buyer may elect to take title as it then is and deduct from the purchase price any prior encumbrance of a definite or ascertainable amount, such as an unpaid tax bill or a mortgage payoff. A buyer who does not want the property with the defect treats the failure to deliver merchantable title as the seller's default and pursues the contract's remedies (paragraph 29 leaves every legal remedy open and awards attorney's fees to the prevailing party), which in practice means terminating, recovering the earnest money and, where the loss warrants it, suing. Most objections never get that far: a price credit, an escrow holdback or an endorsement is the usual landing.

General information as of August 12, 2025, revised October 5, 2026; not legal advice; laws change; consult a lawyer about your situation.