Escrow & TitleIntermediateDelaware Exam

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 revealCorrect

CSimply a narrow exception carved out only for agricultural properties that are exempt from standard survey requirements

DAn exception allowing the title company to conduct its own survey

Why An exception in the policy excluding coverage for matters that a current survey would reveal Is Correct

Answer B: An exception in the policy excluding coverage for matters that a current survey would reveal

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.

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.