Survey Exception Clause

Survey Exception Clause

A Survey Exception Clause is a provision commonly found in title insurance policies that excludes certain defects, encroachments, or other issues related to the physical condition of the property that would be revealed by a survey. This clause indicates that the title insurer will not be liable for losses resulting from these issues because they are not typically represented in the title documents.

This clause is particularly relevant in real estate transactions where a survey—a detailed measurement of the property’s boundaries and physical features—is conducted. The survey may reveal problems such as boundary disputes, easements, or encroachments from neighboring properties. By including a Survey Exception Clause, the title insurer limits its liability to only those issues that can be determined from the title records, which do not include the findings of a survey.

For example, if a property owner discovers that their neighbor’s fence is built on their property after obtaining a survey, the title insurance may not cover any related claims or losses due to the Survey Exception Clause. Therefore, it is crucial for buyers and property owners to understand the implications of this clause and consider obtaining a comprehensive survey prior to purchasing property to ensure they are aware of any potential issues.