EXCEPTIONS FROM COVERAGE
In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorney's fees, and expenses resulting from:
1. The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception.):
No. 1 in Schedule B is the restrictive covenant exception. All restrictive covenants affecting the property shown in Item 4 in Schedule A must be listed. If there are no restrictive covenants affecting the property, the exception must be deleted from the commitment.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.
No. 2 in Schedule B is the survey exception. This exception can be amended to read "shortages in area" in accordance with Procedural Rule P-2 on both an owner and mortgagee policy. An additional premium must be charged if the amendment is done in an owner policy in accordance with Rate Rule R-16.
3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner's Policy only.)
Exception is taken to any homestead, community property or survivorship rights in this item. This exception only applies to any owner policy to be issued.
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled-in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area.
(Applies to the Owner's Policy Only)
No. 4 in Schedule B is the tidelands or water rights exception. This exception applies only to any owner policy to be issued. If the property to be insured abuts any type of navigable waterway, separate exception must be taken in a mortgagee policy.
5. Standby fees, taxes and assessments by any taxing authority for the year 20____, and subsequent year, and subsequent, taxes and assessments by any taxing authority for prior years due to change in land usage or ownership.
No. 5 in Schedule B is the tax exception. This exception may be amended to read "Standby fees, taxes and assessments by any taxing authority for the year 20__ and subsequent years in any mortgagee policy to be issued in accordance with Procedural Rule P-20 and Rate Rule R-19. In addition, the following sentence is available, "Company insures that standby fees, taxes and assessments by any taxing authority for the year _____ are not yet due and payable.", in accordance with Procedural Rule P-29 and Rate Rule R-24.
6. The terms and conditions of the documents creating your interest in the land.
No. 6 in Schedule B excepts to the terms and conditions of the documents that will be drawn for the specific transaction to be insured.
7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Loan Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence to us before a binder is issued.)
No. 7 in Schedule B is the mechanic lien exception which only relates to the Mortgagee Title Policy Binder on Interim Construction Loans.
8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Loan Policy only.)
No. 8 in Schedule B excepts to all liens and leases that are subordinate to the insured mortgage. Therefore, this exception is only applicable to the mortgagee policy. This exception can be deleted from the mortgagee policy in accordance with Procedural Rule P-11(8).
9. The following matters and all terms of the document creating or offering evidence of the matters (We must insert matters or delete this exception.):
Under this item, all special exceptions affecting the subject property must be listed. These exceptions can include various matters such as:
Liens Not to be Paid Off
Rights of Parties in Possession
Easements and Rights of Way
Various agreements, affidavits, etc. affecting the subject property
This list is certainly not exhaustive. All matters found of record against the subject property should be listed here. If there are no special exceptions on this property, the title company must delete this exception.
No guidelines are available for this form at this time.