What do exceptions in a title insurance commitment refer to?

Exceptions in a title insurance commitment refer to certain exclusions from the policy that outline what is not covered under the title insurance. These exceptions are critical for understanding the limitations of the coverage being provided. Title insurance is designed to protect against defects in title that may affect ownership rights, but it does not cover everything.

The exceptions typically list specific issues or claims that the insurer will not cover. This may include things like easements, prior liens, or other encumbrances that could affect the property but were not resolved at the time of the policy's issuance. It is essential for buyers and property owners to review these exceptions carefully, as they can indicate potential risks or liabilities associated with their ownership of the property. Understanding these exclusions helps buyers make informed decisions and understand what protections the title insurance policy does not provide.