Glossary

Schedule B Exceptions

In one sentence

The items listed in a title commitment that the title policy will not insure against, such as easements, restrictions, and matters a survey would show.

The longer version

Schedule B splits into two lists. B-I requirements are conditions to issuing the policy at all. B-II exceptions are carve-outs from coverage that survive closing, including recorded easements, covenants, and standard exceptions like parties in possession.

Lender's counsel reads every exception against the survey and the use of the property, negotiates endorsements or removals where coverage matters, and accepts the rest. The negotiation is document-heavy and involves the title company, the surveyor, and sometimes tenants, which is why exception clearing shows up on nearly every closing timeline.

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