Deleting the Area & Boundary Exception

There is standard language on Schedule B of a title commitment and title policy that says the title insurer is not liable for discrepancies in boundary lines, other people’s structures built over property lines, and other similar issues that would be shown on a survey of the property.

With a satisfactory survey reviewed and approved by the title company, the buyer may choose to “delete” the Area & Boundary Exception, which gives them coverage that was withheld by the original exception on the title policy.

In this case, “deleting” is really adding! When a buyer chooses to delete the Area & Boundary Exception, they add coverage to their title policy.

Some examples where a homeowner would be protected include*:

🏠 A utility company requires removal of improvements that are located in an easement.
🏠There is an issue with the survey that was used when the buyer purchased the property. The buyer’s new neighbor is claiming that the fence needs to be moved. The buyer has no recourse with the surveyor since the survey was done for the prior homeowner.
🏠The Homeowners’ Association claims improvement are built over a building line and demands improvements be removed
🏠A neighbor claims insured improvements are over the property line into their property

*These examples are for illustrative purposes only and do not represent actual coverage for any specific property on any specific title policy.

Have questions about the Area & Boundary Exception? Contact us today.