Escrow & Title
In Colorado, a 'survey exception' in a title insurance policy means:
AA. The policy does not cover any title defects
BB. The policy excludes coverage for matters that would be disclosed by an accurate survey — such as encroachments, boundary disputes, or easements not shown in public records✓ Correct
CC. The surveyor's errors are covered by the policy
DD. The policy covers improvements regardless of boundary issues
Explanation
Standard title insurance policies typically include a 'survey exception' that excludes coverage for matters an accurate survey would reveal — such as encroachments of improvements over boundaries, easements visible on the ground but not recorded, or gaps/overlaps in descriptions. This exception can be removed (insured over) if the buyer provides an acceptable survey (ISP or full boundary survey).
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