Escrow & Title
In Tennessee, a 'title exception' in a title commitment means:
AThe title is completely clear
BA specific risk or encumbrance that the title insurance policy will NOT cover✓ Correct
CA defect that will be cured before closing
DAn error in the legal description
Explanation
Title exceptions are items listed in the title commitment that are excluded from coverage — such as existing easements, deed restrictions, or encroachments. The buyer takes title subject to these exceptions.
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