Escrow & Title
What is a 'survey exception' in a title insurance policy?
AAn exception for properties that have never been surveyed
BAn exception in the policy excluding coverage for matters that a current survey would reveal — such as encroachments, boundary disputes, or easements not shown in public records✓ Correct
CAn exception for agricultural properties exempt from survey requirements
DAn exception allowing the title company to conduct its own survey
Explanation
Many standard title insurance policies include a survey exception, which excludes coverage for matters that would be disclosed by a current, accurate survey — such as encroachments, easements, or boundary overlaps. Buyers who want survey coverage should obtain an ALTA extended coverage policy or have the survey exception removed after providing a current survey to the title company.
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