Five requirements and four special exceptions on a composite commitment are sorted by what the buyers must resolve, remove or accept in this MT432 Unit 7 title examination memo. Searches like "mt 432 unit 7 assignment example", "mt432 unit 7 sample" and "mt432 unit 7 example" land here.
What a finished MT432 Unit 7 title examination memo looks like
A five-page memo to the buyers, headed by a summary table. Schedule A is restated first: effective date August 31, 2026, a proposed owner's policy of $389,000, title vested in Dale R. and Karen L. Hobart, and the lot-and-block description checked against the plat. The Schedule B-I requirements follow, each with its action and the party responsible: the $211,400 mortgage payoff and release, a home equity line with no balance that must be closed and released, a $6,812 judgment against a Dale Hobart, a deed signed by both sellers, and taxes prorated at $3,834.74. Schedule B-II comes next, standard exceptions first, then a platted utility easement, a 1994 declaration of covenants, a 1961 mineral reservation and a 2011 fence encroachment agreement. A closing list names documents to request.
How a MT432 Unit 7 example is structured
The memo works from risk outward, so the buyers read first what could stop the closing and last what they will simply live with. Requirements lead because the policy will not issue until each is satisfied, and the memo checks that the sale proceeds can cover them: after the payoff, the judgment and the tax credit, about $166,953 remains. The judgment gets the longest paragraph, since a name match is not an identity match; the memo requests an identity affidavit, or a payoff from proceeds if Dale is the debtor. Exceptions are then divided. Standard exceptions can often be removed with a survey and an owner's affidavit, which the memo recommends. Special exceptions are read against the buyers' plans, and one conflict emerges: the covenant caps sheds at 120 square feet, and the Galloways intend to build a 160-square-foot workshop.
Schedule A checked
Effective date, policy amount, vesting and description compared with the purchase contract and the recorded plat.
Requirements before closing
The mortgage payoff, the open credit line, the judgment, the sellers' deed and the tax proration, each with its responsible party.
A name, not yet a debtor
Why the $6,812 judgment against a Dale Hobart calls for an identity affidavit rather than an automatic payoff from the sale.
Standard exceptions to remove
Parties in possession, survey matters and unfiled liens, and the survey and affidavits that can take them off the owner's policy.
Special exceptions against the buyers' plans
The utility easement, the covenants, the mineral reservation and the fence agreement, with the 120-square-foot shed limit flagged.
Where marks go in MT432 Unit 7
Sorting is the skill this unit usually grades. A memo that lists every item in the order the commitment prints them, without saying which must be resolved and which can be accepted, leaves the buyer where the commitment did. A common error reads title insurance as curing the listed exceptions, when anything excepted in Schedule B is simply not covered. Instructors frequently look for the distinction between requirements and exceptions, and for a responsible party named beside each requirement. Open credit lines are another test: they need a closed account, not just a zero balance, before a release is reliable. Reading covenants against the client's stated plans shows judgment that listing them does not. Recommendations should name specific documents: payoff letters, affidavits, a survey.
Get a MT432 Unit 7 example written to your instructions
Schedule A and both parts of Schedule B, as the Unit 7 commitment prints them, plus any plans the buyer has announced and the grading criteria, will do. Sorted by what must be resolved, removed or accepted, with a responsible party beside each item, the free first title memo is ready in 24-48h.
MT432 Unit 7 questions, answered
What separates Schedule B-I from B-II in a title commitment?
Schedule B-I lists requirements, things that must happen before the policy issues, such as paying off a mortgage or recording a deed. Schedule B-II lists exceptions, matters the policy will not cover, such as easements or covenants. Requirements get resolved; exceptions are accepted, negotiated, or removed by the insurer on additional evidence.
Why must a zero-balance credit line be closed before closing?
An open line of credit can be drawn again after the payoff figure is issued, and the mortgage securing it remains valid until released. Title companies typically require written instructions from the borrower to freeze and close the account, plus a release recorded after closing. A zero balance alone does not remove the lien.
Can standard exceptions be removed in the MT432 memo's recommendations?
Often, yes. Many insurers will delete or narrow the survey exception with a current survey and remove the parties-in-possession and unfiled-lien exceptions with an owner's affidavit, sometimes called extended coverage. Practice and cost vary by state and insurer, so bracket the mechanism if your case uses a hypothetical jurisdiction. Naming the evidence each deletion needs makes the recommendation concrete.