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A warranty of title is a guarantee by a seller to a buyer that the seller has the right to transfer ownership and no one else has rights to the property. In addition, a warranty of title may be used to guarantee that no other party has copyright, patent or trademark rights in the property being transferred.
An exception is a specific item set forth that is not covered by the policy — something that is excluded from coverage. STANDARD EXCEPTIONS. Every commitment has standard or regional exceptions. The standard Owner's Policy will not cover any defects in title, losses or claims, which fall within the standard exceptions.
Some common exceptions, for example liens or encumbrances that originate in the gap between the issue of the title insurance commitment and the date of transfer of the property, or unpaid taxes for the current year, are often eliminated per standard procedure before the closing date.
An exception is a specific item set forth that is not covered by the policy — something that is excluded from coverage. STANDARD EXCEPTIONS. Every commitment has standard or regional exceptions. The standard Owner's Policy will not cover any defects in title, losses or claims, which fall within the standard exceptions.
Exclusions are defined as matters unrelated to matters of title. Exclusions are called out in a title insurance policy as a matter of clarification. Exclusions are not strictly speaking matters of title, but matters related to use of the parcel, use being a different matter than title to the property.
These exceptions may include: boundary line disputes. Easements or claims of easements not shown in the public records. Taxes or special assessments left off the public record. Claims of people who turn out to be living in the house (such as a prior owner's tenants) if their being there isn't a matter of public record.
These exceptions will generally consist of unpaid taxes, easements, restrictive covenants, and other matters recorded against the property being insured. A lender or owner can enhance their coverage by obtaining endorsements or amendments to the standard title insurance policy form.
Permitted Exceptions means (i) all minor defects, exceptions, restrictions, easements, rights of way and encumbrances that do not materially interfere with the use of a property or asset. (ii) statutory liens for current Taxes, assessments or other governmental charges not yet due and payable or the amount or validity
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