Escrow & Title
In South Dakota, a 'survey showing encroachments' reported in a title insurance policy exclusion means the buyer:
AReceives full coverage for the encroachment
BMay not be covered for losses arising from the encroachment unless they purchased extended coverage✓ Correct
CMust immediately remove the encroachment before closing
DIs protected automatically by the state's recording laws
Explanation
Standard title insurance excludes survey matters (like encroachments). To be covered, the buyer must purchase extended coverage or an ALTA policy with a survey endorsement that addresses encroachments.
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