Escrow & Title

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?

AYes, all encroachments are covered by title insurance
BNo, the survey exception excludes this from coverage✓ Correct
CYes, if the encroachment was not visible
DOnly if the encroachment is over 1 foot

Explanation

Standard title insurance policies contain exceptions for survey matters, meaning encroachments that would have been discovered by a survey are typically not covered. Minnesota buyers who want protection against encroachments should obtain a survey and request an ALTA extended coverage policy that eliminates the survey exception.

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