In real estate, Exceptions to Title are specific matters that affect ownership or use of a property but are not covered by a title insurance policy. These exceptions are listed in the title commitment or policy and may include items such as easements, restrictions, encroachments, liens, or mineral rights that remain on the property.
Because these matters are excluded from coverage, the title insurer will not protect the buyer or lender against losses arising from them. Reviewing exceptions to title is an important step in a real estate transaction, as they can limit how the property may be used or impact its value and marketability.
