Items listed as exceptions to a title insurance commitment are placed in the last portion, or Schedule B-2, of the commitment. As such, the items are often ignored when reviewing your commitment. However, these exceptions can significantly alter the scope of your title insurance coverage. Without understanding the matters listed as exceptions, you cannot evaluate the title to your real estate.
When placing an order for title insurance, you are entitled to obtain and review copies of all of the documents listed as exceptions in Schedule B-2. Upon a careful review of the documents listed as exceptions, you will better understand the title to the real estate and you may be able to present evidence which would allow the title company to delete the exception or provide affirmative coverage which insures over the exception. More importantly, you may discover a crucial defect which affects your future use and ownership of the property.
Author: Jason P. Lueking (bio)
Phone: 317.464.1591
email: jlueking@bamberger.com
Tags: Jason Lueking, real estate documents, Schedule B-2, title insurance