Escrow & TitleIntermediateDelaware Exam

What is a 'survey exception' in a Delaware title insurance policy?

AA property excluded from survey requirements

BAn exception in the title policy for matters that a current survey would reveal, such as encroachments, boundary disputes, or easementsCorrect

CSimply a narrow policy exception covering only survey costs that are not otherwise covered by title insurance, as is customary in Delaware

DA clause allowing the insurer to conduct their own survey

Why An exception in the title policy for matters that a current survey would reveal, such as encroachments, boundary disputes, or easements Is Correct

Answer B: An exception in the title policy for matters that a current survey would reveal, such as encroachments, boundary disputes, or easements

A standard title policy contains a survey exception, excluding coverage for matters that an accurate current survey would show (encroachments, boundary discrepancies, easements not in the public record). An extended coverage policy or survey endorsement can remove this exception.

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.