- November 25, 2009
- All Issuing Offices
- Drafting Descriptions of Exceptions
Unnecessary subjective descriptions of recorded documents which are listed as Title Policy Schedule B Exceptions can lead to costly litigation in circumstances where no coverage was clearly intended. An example is a Schedule B exception that reads "Easement as set forth in the document recorded at Vol. XXX, Page YYY..." If the document also contains maintenance provisions it might be argued that the exception is limited to the grant of an easement and the maintenance requirements are covered matters. The better practice is to simply reference the document recording information without use of a subjective description, such as "Document recorded at Vol. XXX, Page YYY." If a description is used it should exactly match the title of the document itself, so that it can not be argued that the description is any form of interpretation or limitation of the intended exception.
When issuing a Restrictions, Encroachments, Minerals Endorsement (ALTA 9-06, 9.1-06, 9.2-06, 9.3-06, 9.4-06, 9.5-06 or equivalent endorsement), please comply with the applicable guidelines relating to restrictions, with particular attention to the possible need for separate and explicit exceptions.
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