Quick Answer
Some title exceptions can be removed, modified, or limited if acceptable evidence is provided to the title insurer. Other exceptions represent valid recorded property rights that cannot be removed because they reflect actual interests in the property.
If you see exceptions on your title commitment that concern you, you may wonder whether they can be removed. The answer depends on the nature of the exception and the evidence available.
When Can an Exception Be Removed
An exception can typically be removed or modified when the title insurer receives sufficient evidence that the underlying risk is not present or has been resolved. Common scenarios include:
- Old mortgage exception: If an old mortgage shows as an exception but it was actually paid off, providing the recorded release may allow removal
- Survey exception: Providing a current survey showing no encroachments may allow removal of the survey exception
- Parties in possession: An affidavit from the seller may address concerns about unrecorded tenant rights
- Mechanics lien exception: Evidence that no recent work was performed may help address this standard exception
What Evidence Might Be Required
The specific evidence depends on the exception. It may include recorded documents, surveys, affidavits, lien releases, payoffs, or title endorsements. Your title company can tell you what evidence would be acceptable for a particular exception.
What Exceptions Usually Remain
Some exceptions represent valid, recorded property rights that cannot be removed. A recorded utility easement, a subdivision restriction that applies to all lots, or a mineral rights reservation are examples of exceptions that reflect actual legal interests in the property. These are not defects; they are interests that exist and will remain after closing.
Can the Buyer Ask for Removal
Yes. If a buyer sees an exception they are concerned about, they should ask the title company whether it can be removed or modified. The request should be made early, because gathering evidence takes time. Discussing exceptions with your real estate agent and attorney can help you decide which ones to pursue.
For more on exceptions and their types, read What Are Title Exceptions? and What Are Standard Title Exceptions?
Key Takeaway
Some exceptions can be removed with evidence; others reflect valid property rights that remain. Ask about exceptions that concern you. The title company can explain what is possible and what evidence would be needed.
FAQs
Does removing an exception increase the title insurance premium?
It may or may not. Removing a standard exception may be part of standard coverage. However, obtaining an endorsement to cover a specific risk may involve an additional premium. Ask your title company about costs before requesting removal.
How long does it take to remove an exception?
It depends on the exception and the evidence needed. Providing a recorded document the title company already has may be quick. Ordering a new survey or obtaining a release from a third party may take weeks. Start the process early.