The Hidden Costs Of Uncleared Title Exceptions
07/27/2026 10:28 AM
Mark Goodman
Land surveys are an essential part of learning more about a commercial property. Hopefully the survey doesn’t turn up anything noteworthy, but it’s also pretty rare for the entire commercial property to be completely unencumbered. In many instances, a land survey will reveal what’s known as a “title exception.” Below, we take a closer look at how some of these title exceptions can cost you money.
Title exceptions can manifest in a number of ways in the wake of a land survey. Perhaps it is revealed that a neighbor accidentally placed a shed on your property, or there’s an old easement that remains a possible point of contention between involved parties. Similarly, because these potential issues are revealed as you’re working to sell, they can end up costing you money in the long run. Here’s how:
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Lower Offers - Many offers are written such that they allow the buyer to adjust their offer amount in the event a land survey reveals potential issues and clear title exceptions. Given the existence of a title exception or the need to then purchase additional title insurance protections to insure these exceptions, the buyer may amend their offer to a lower amount, costing you money on the sale.
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Buyer Credits - Another way that a buyer may ask to address title exceptions is through a buyer’s credit. Essentially, the seller gives some money back to the buyer at closing so that they have cash on hand to address title exceptions that were discovered and not rectified by the buyer prior to closing. Again, this comes out of your wallet as the seller.
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Closing Delays - Some offers or escrow arraignments may be contingent on the seller addressing any discovered title exceptions prior to closing. If this delays closing, you may end up incurring additional costs, like mortgage payments or insurance costs. Even if closing stays on track, you may need to take money out of your own pocket to rectify the issues that were discovered during the survey.
For assistance navigating title exceptions during a commercial sale or purchase, connect with the industry experts at Commercial Partners. We know how to discover, solve and insure all of these potential title issues to keep the transaction on track and protect your interests. For more information, give the team at Commercial Partners a call today at (612) 337-2470.