Escrow & Title
A Connecticut closing attorney reviews the title commitment and finds a 'Schedule B-2 exception' for an unrecorded lease. This exception means:
AThe title insurance will cover any claims arising from the lease
BThe title insurance will NOT cover claims arising from this specific lease; it is excluded from coverage✓ Correct
CThe lease must be voided before closing
DThe tenant must sign the deed
Explanation
Schedule B-2 of a title commitment lists exceptions to coverage—items the title insurance policy will NOT cover. An exception for an unrecorded lease means the policy will not protect against claims arising from that lease. The parties should investigate and resolve the exception before or at closing.
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