Understanding Title Insurance When Buying or Selling on Ono Island
By Meredith Amon, Licensed in Alabama and Florida
"Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Amon."
When you're buying or selling property on Ono Island in Orange Beach, Alabama, one of the most important—but often overlooked—parts of the transaction is title insurance. I work with both buyers and sellers on the island, and one of the most common questions I receive is: What exactly is title insurance, and why do I need it?
In this guide, I’ll explain how title insurance works, what a title commitment includes, and how to review an ALTA Commitment for Title Insurance—so you can approach your closing with confidence.
What Is Title Insurance?
Title insurance is a one-time policy that protects property buyers and lenders against financial loss due to defects in the title to the property. These defects can include:
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Unpaid taxes
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Forged signatures on prior deeds
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Undisclosed heirs
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Boundary disputes
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Liens from contractors or past owners
Unlike homeowners insurance, which protects against future events, title insurance protects you against past issues that could threaten your ownership rights after closing.
There are two common types:
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Owner’s Title Insurance: Protects you, the buyer, from any claims or issues related to the property title
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Lender’s Title Insurance: Protects the mortgage company’s interest in the property (required if you're using a loan)
Even if you're paying cash, I always recommend purchasing owner’s title insurance. It’s a relatively small cost compared to the long-term protection it provides.
What Is a Title Commitment?
A title commitment is a preliminary report issued by a title company before closing. It outlines the conditions that must be met in order to issue title insurance. Think of it as a preview of the title policy you will receive at closing.
The commitment will list:
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The legal description of the property
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The proposed insured parties (buyer and lender)
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Exceptions to coverage
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Requirements that must be met before closing
Understanding this document is essential—it tells you exactly what is covered, what is excluded, and what needs to be resolved before the title can transfer cleanly.
How to Read an ALTA Title Commitment
The most common format you'll see is the ALTA (American Land Title Association) Commitment for Title Insurance, which is standardized for clarity. Here’s a breakdown of the main sections:
Schedule A: The Basics
Schedule A includes the foundational details of the transaction:
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Effective Date: The date the title search was conducted
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Proposed Insured: The buyer (and the lender, if applicable)
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Policy Amount: Typically the purchase price or loan amount
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Current Owner of Record: Who currently holds the title
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Legal Description of the Property: Taken from the recorded deed or plat
Why it matters: Make sure all the names and figures are correct—this is the basis of your title insurance policy.
Schedule B-I: The Requirements
This section outlines everything that must be addressed before title insurance can be issued. Common items include:
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Payment of the purchase price
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Release of prior liens or mortgages
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Satisfying any judgments or taxes
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Providing proper estate documentation (if the seller is deceased)
Why it matters: This tells your closing team what must be cleared to ensure you receive clean title. If anything is left unresolved, your closing could be delayed or your coverage could be compromised.
Schedule B-II: The Exceptions
Schedule B-II lists the exceptions to your coverage. These are items that will not be covered under your title insurance policy. Examples may include:
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Easements or rights of way (e.g., utility access)
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Restrictions or covenants tied to the property
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HOA or POA regulations
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Items that a survey or inspection would reveal
Why it matters: Buyers should review these exceptions carefully. For example, on Ono Island, you may see easements for the Property Owners Association or drainage rights. These don’t necessarily impact your ownership, but you need to understand them.
I always recommend reviewing this section with your closing attorney or title agent. They can help clarify any items that may affect your use of the property.
What Title Issues Are Common on Ono Island?
On Ono Island, you may encounter:
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Old covenants and restrictions recorded decades ago
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Undocumented easements along canals or utility lines
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POA or ACC-related encumbrances
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Dock or seawall improvements that weren’t formally recorded
These don’t always cause problems, but they should be understood before closing. Your title company and your real estate advisor (that’s me) can help flag anything unusual.
What If a Problem Is Discovered?
The good news is that most title issues can be resolved before closing. That’s the purpose of the title commitment—it gives everyone a chance to clear up defects.
In rare cases where an issue can't be resolved, the seller may need to obtain a court order or title curative document, which can delay closing. If you have owner’s title insurance, you’re protected from financial losses that may result from certain unresolved issues after the sale.
Final Thoughts
Understanding the title commitment and title insurance is one of the most important steps you can take when buying or selling property on Ono Island or anywhere in Orange Beach. While it’s a standard part of every transaction, the details matter—especially when dealing with waterfront property, private covenants, and legacy easements.
As your real estate advisor, I work closely with experienced local title companies, closing attorneys, and surveyors to help guide you through the process. If you ever have a question about what’s in your title commitment or what it means, I’m here to help walk you through it line by line.
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