Escrow & Title
A lender requires a 'survey exception' to be removed from the title insurance policy. This means the title company will:
AWaive the requirement for a survey
BInsure against survey matters (boundary issues, encroachments) after reviewing an acceptable current survey✓ Correct
CGuarantee that the survey is accurate
DAutomatically cover all survey-related claims for 5 years
Explanation
The standard survey exception excludes coverage for matters that would be revealed by an accurate survey. When the lender (or buyer) requests removal of this exception, the title company reviews a current survey and agrees to insure against matters that the survey discloses, providing broader coverage.
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