Closings glossary

Title exception

A matter the title policy does not insure against, listed on Schedule B. Some exceptions are removed before closing and others are simply accepted by the buyer.

What is a title exception?

Quick Answer

A title exception is an item listed in a title report that the insurer will not cover: a lien, an easement, a covenant, an open permit or a survey discrepancy. Clearing exceptions, or agreeing to take title subject to them, is much of the work between contract and closing.

The full definition

A matter the title policy does not insure against, listed on Schedule B. Some exceptions are removed before closing and others are simply accepted by the buyer.

Also called: Schedule B exception.

Where does title exception come up in a New York City closing?

A Brooklyn report excepts a recorded party wall agreement and an old sidewalk easement, and both remain on the policy after the buyer takes title.

What else should you read before closing?

In the glossary

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