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
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.
Which related terms should you know?
These are the terms that come up alongside title exception in the same file.
- Schedule B
- The requirements and exceptions section of a title commitment. Requirements are cleared before closing; exceptions remain uninsured unless removed or endorsed over.
- Title commitment
- The document offering to insure title on stated terms, with Schedule A facts and Schedule B requirements and exceptions. It is the working agenda between contract and closing.
- Easement
- A right to use part of another owner's property for a specific purpose. Easements appear as exceptions on a title report and generally survive a sale of the land.
- Covenant
- A recorded promise or restriction that runs with the land and binds future owners. Restrictive covenants limit what the property may be used for or how it may be built on.
- Curative work
- The clearance steps taken between commitment and closing to remove title requirements: releases, satisfactions, corrective deeds, estate paperwork and payoffs of stale liens.
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?
Questions this raises
- What happens if the title search finds a problem before closing?Schedule B-I requirements are the punch list, not a dead deal. How New York closings clear old liens, missing satisfactions and name hits before th...
- What does title insurance cover?Old liens, recording errors, forged deeds, undisclosed heirs, easements: what a New York title policy covers, what Schedule B excludes, and how cla...
Title issues
- Open permitAn open DOB permit is work the City still shows as unfinished. It rarely kills a NYC deal outright, but it moves the date and it follows the buyer.
- Unsatisfied mortgage of recordA paid-off mortgage with no recorded satisfaction still reads as a live lien in ACRIS. Here is how it is found, how it is cleared, and who pays for...
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.