Escrow & Title
A Minnesota buyer receives a preliminary title report (title commitment) showing Schedule B exceptions. What do these exceptions represent?
AItems covered by the title insurance policy
BMatters the title insurance policy will NOT cover✓ Correct
CPrior owners of the property
DFuture risks the insurer is monitoring
Explanation
Schedule B of a title commitment lists the exceptions - items NOT covered by the title insurance policy. Exceptions may include easements, deed restrictions, mineral rights, or other encumbrances. Buyers must review Schedule B carefully to understand what title insurance won't protect against. Common exceptions include survey matters, taxes, and known encumbrances.
Related Minnesota Escrow & Title Questions
- A Minnesota title insurance policy contains an exception for 'matters that would be disclosed by a survey.' The buyer did not get a survey. A neighbor's fence encroaches on the property. Is the buyer covered?
- A Minnesota title search reveals an unsatisfied mechanic's lien filed by a contractor six months ago. What must happen before the seller can convey clear title?
- A Minnesota property has an abstract of title going back to 1890. The current owner wants to sell, and the buyer's attorney finds a break in the chain of title in 1947. This break is:
- In Minnesota, a 'special warranty deed' (limited warranty deed) differs from a general warranty deed in that:
- A Minnesota title company charges a 'gap premium' in addition to the standard title insurance premium. What does the gap period refer to?
- At a Minnesota closing, the parties sign a 'settlement statement' showing all financial aspects of the transaction. For residential transactions, what federal form is required for most mortgage loan closings?
- At a Minnesota closing, the buyer receives a Loan Estimate (LE) and a Closing Disclosure (CD). Under TRID rules, when must the Closing Disclosure be provided to the buyer?
- In Minnesota, a Torrens certificate of title provides which benefit over abstract title?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →