Escrow & Title
A Montana title company issues a title insurance policy 'subject to survey.' This means the policy:
ADoes not cover the entire property area
BDoes not cover title issues that would be revealed by an accurate survey, such as encroachments or boundary disputes✓ Correct
CIs invalid until a survey is completed
DCovers only the improvements, not the land
Explanation
A 'subject to survey' exception in a title policy means the insurer will not cover title defects or encumbrances that would be revealed by a current, accurate survey—such as encroachments, fence line discrepancies, or boundary disputes.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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