How can non-standard exceptions set forth in a title commitment affect the uninsured party?
Such exceptions might relate to prior mortgages, competing claims to ownership, or the existence of easements, use restrictions, or reservations, such as mineral reservations. Thus, the value of the property to the purchaser or the priority of a lender’s mortgage and the extent to which the mortgaged property has value in the hands of a third party if the lender must foreclose on and resell it could be affected by the existence of such exceptions. Therefore, a prudent purchaser or lender will have the documentation pertaining to non-standard exceptions carefully examined before the closing. Efforts may have to be undertaken to cure one or more of these exceptions. Purchasers and lenders should keep in mind that an appraiser often does not consider title exceptions when evaluating a parcel of property for mortgage purposes. 15. Are there any special or unusual features in a title insurance policy? Like any form of insurance, title insurance is offered and subject to the terms and condit
