When a renewable energy project is headed for sale, one overlooked detail can bring everything to a halt: the title commitment.
At first glance, it may seem like just another box to check. But for project developers and buyers alike, unclear, incomplete, or outdated title commitments can stall or even kill a transaction. In today’s competitive M&A landscape, it’s no longer enough to say, “We’ll figure it out in diligence.”
You need clean land. You need clear title. And you need it before buyers start asking questions.
A title commitment is a preliminary report from a title company that outlines the conditions under which a title insurance policy will be issued. In simple terms, it tells you:
Who owns the land
What rights or restrictions exist
What must be resolved before title can be insured
For clean energy projects, this document is critical. It’s the legal roadmap that buyers, investors, and lenders rely on to assess risk, value the project, and move toward closing.
Think of a title commitment as your early warning system. It’s not just a policy waiting to be issued — it’s a snapshot of the title as it exists right now and what must be resolved before a clean policy can be issued. Here’s what you’ll typically see:
Who the insured parties are
What type of policy is being issued
The legal description of the land
Why it matters: If the party listed isn’t the true owner, or the legal description doesn’t match your site plan, you’ve got problems.
What needs to happen before the policy is issued (like releases, affidavits, or additional documents)
Why it matters: These are your to-dos. If they’re not addressed, the policy won’t be issued and your deal may stall.
Easements
Rights of way
Encroachments
Liens or encumbrances that won’t be covered by the policy
Why it matters: These are the red flags. They outline the risks that won’t be covered, which could impact your development footprint, access, or even project feasibility.
Here are some of the top issues that pop up during title review and scare buyers away
| 🚩 Title Flag | 💥 Why It’s a Problem |
|---|---|
|
Unreleased mortgages or liens |
Can delay closing or scare off potential buyers |
|
Access easements |
May impact your site layout or interconnection plan |
|
Ownership issues |
Wrong party signing agreements = invalid control |
|
Boundary discrepancies |
Can lead to site redesign or legal disputes |
|
Mineral rights reservations |
Future surface use risk – especially in certain states |
Any one of these can trigger buyer concern, delay financing, or result in retrades—or worse, a deal falling apart.
If you’re preparing your project for M&A or financing, don’t wait for the buyer to find title problems. Take a proactive approach:
✅ Order early title commitments on all parcels under site control
✅ Review them with an experienced land consultant or attorney
✅ Identify and address encumbrances before marketing the asset
✅ Ensure your site control and legal descriptions align 1:1
✅ Prepare clean title documentation to share during due diligence
A detailed title review should be part of your overall real estate risk assessment. It’s not just about getting a deal done—it’s about protecting the value of your project.
At the end of the day, what buyers want is simple: clarity and confidence.
If your title commitments are clean, complete, and well-documented, you’re already ahead of most developers in the market. If they’re vague, outdated, or loaded with red flags, you’re asking buyers to take on unnecessary risk—and that’s a fast way to lose the deal.
Let’s talk about how we can help you review, clean, and organize your title commitments so your project can move through M&A without roadblocks.
Because in project development, clean title = closed deal.
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