Escrow & TitleIntermediateAlaska Exam

In Alaska, a buyer who receives a 'survey exception' in the title insurance commitment should:

AAccept it since it is standard in all policies
BObtain a survey to identify any survey-related issues before closingCorrect
CWaive the exception to expedite closing
DAsk the title company to remove it without conducting a survey, in general

Why Obtain a survey to identify any survey-related issues before closing Is Correct

Answer B: Obtain a survey to identify any survey-related issues before closing

A survey exception in a title commitment means the policy will not cover losses due to survey-related issues (encroachments, boundary disputes, unrecorded easements visible on inspection). Obtaining a current survey before closing identifies these issues and may allow the buyer to obtain coverage or address the problem.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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