Escrow & Title
A Minnesota buyer's purchase agreement requires the seller to provide a survey. The survey reveals a 2-foot encroachment of the neighbor's fence onto the subject property. How must this be resolved before closing?
AThe buyer must accept the encroachment as an 'as-is' condition
BThe seller must either have the fence moved, obtain a boundary line agreement, or negotiate an appropriate adjustment✓ Correct
CThe encroachment is automatically resolved by recording the new survey
DThe buyer's title insurance will automatically cover the encroachment
Explanation
An encroachment discovered in a survey is a title defect that must be resolved before closing with clear title. Options include: having the neighbor remove the encroachment, recording a boundary line agreement acknowledging the encroachment, negotiating a price reduction to compensate for the cloud on title, or obtaining an easement allowing the encroachment. Title insurance would not cover a known encroachment unless it is specifically excepted and acceptable to the buyer.
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?
- At a Minnesota real estate closing, the buyer receives a credit for:
- Title insurance in Minnesota protects the insured against losses from:
- A Minnesota buyer is purchasing a home in Hennepin County. The deed will be recorded with which office?
- In Minnesota, a 'bona fide purchaser for value' (BFP) receives greater protection when buying real property because:
- A Minnesota real estate closing is being conducted through a mail-away or remote closing. Which issue is most critical to address?
- A Minnesota title company charges a 'gap premium' in addition to the standard title insurance premium. What does the gap period refer to?
- A Minnesota closing is scheduled for December 31 but must be postponed to January 3 due to a holiday. Who bears the cost of additional interest during the delay?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →