Enter to open, tab to navigate, enter to select
Schedule B Exception
Practical Law Glossary Item 1-508-6347 (Approx. 3 pages)
Glossary
Schedule B Exception
Also known as a title exception. A title matter listed on Schedule B of a title insurance commitment or a title insurance policy as an exception to the title insurance coverage a title company:
- Commits to provide in a title policy issued under the provisions of the title commitment.
- Provides in a title policy.
Although title commitment forms vary by state, Schedule B of a title commitment generally consists of:
- Schedule B, Part I (Requirements). The requirements that must be satisfied for the title company to issue a title policy pursuant to the title commitment.
- Schedule B, Part II (Exceptions). The title exceptions, often divided into:
- a section listing the general (or standard) title exceptions, which are typically matters that may affect the insured property but are not recorded in the public records; and
- a section listing specific title exceptions determined from a title search to affect the insured property.
Counsel representing the insured party negotiates with the title company to:
- Amend Schedule B of the title commitment by deleting or revising inappropriate or inapplicable title exceptions.
- Omit from Schedule B of the title policy the title exceptions that are ultimately satisfied, released, terminated, or otherwise resolved.
- Issue a title insurance endorsement or provide affirmative coverage in the title policy addressing any unacceptable title exceptions on Schedule B that cannot be amended or omitted.