Escrow & Title

A preliminary title report (title commitment) issued in Oregon shows a 'Schedule B' exception for an easement. This means:

AThe title insurance policy will cover losses from that easement
BThe easement is excluded from coverage — the buyer takes title subject to that easement✓ Correct
CThe easement must be removed before closing
DThe title company will pay to relocate the easement

Explanation

Schedule B of a title commitment lists exceptions — items that are NOT covered by the title insurance policy. An easement listed in Schedule B means the title policy will not insure against losses arising from that easement. The buyer takes title subject to the easement. Buyers should review Schedule B carefully and investigate any exceptions before closing.

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