Item the title company says must be satisfied before it will issue final title coverage for a mortgage transaction.
A title requirement is an item the title company says must be satisfied before it will issue final title coverage for a mortgage transaction.
A title requirement matters because it can delay closing even when the borrower is otherwise approved. Requirements are the practical checklist items standing between the title commitment and final title policies.
It also matters because requirements often involve other parties. A seller may need to sign a document, an old lien may need to be released, a payoff may need to be confirmed, or a recorded item may need correction.
Borrowers usually encounter title requirements during title review and closing preparation, after the Title Search and before Closing.
The term becomes practical when the title company says the file is not ready because a requirement in the Title Commitment still needs to be cleared.
| Term | Borrower-facing distinction |
|---|---|
| Title requirement | Item that must be satisfied before final title coverage |
| Title Exception | Matter the final policy may exclude or treat as a known limitation |
| Title Defect | Problem that may create the need for a requirement |
| Clear Title | Desired result after requirements are satisfied or handled |
A title commitment shows that the seller’s old mortgage must be paid off and released. Until the title company has acceptable payoff and release handling, that item remains a title requirement.
Title requirement differs from Title Exception because a requirement must be satisfied before the policy is issued, while an exception may remain as a listed limitation.
It differs from Title Commitment Schedule B because Schedule B is the section where the item may appear, while the requirement is the specific action or condition.
It also differs from Clear Title because clear title is the desired condition, while a title requirement is one step needed to get there.