Title Insurance And The Survey Exception

06/17/2026 02:46 PM       Mark Goodman

You’ll be tasked with a number of requirements after you have an accepted offer but before you sign on the dotted line during closing. This stage of the deal is known as due diligence, and it’s when inspections, surveys and other investigations are conducted in order to ensure there are no issues that could cause problems once you take over as owner. This is also a time when you’ll work towards securing title insurance to provide protection from issues that go undiscovered but eventually reveal themselves after closing. One potential pitfall you’ll have to consider when securing title insurance is what’s known as the survey exception gap. We discuss what it is and how to keep yourself protected when securing title insurance in today’s blog. 

When securing a title insurance policy, the policy may offer a regional or standard exception in regards to a property survey. The exception basically says that the insurance company will provide coverage for how the property is described in the deed, but they aren’t responsible for exactly where buildings, fences or property lines sit unless a professional surveyor is brought in to conduct an official survey. 

This exception is in place for a couple of reasons. Its inclusion means that buyers can waive a survey in order to save some money, but doing so could open them up to risk in the event that an issue is discovered that would not be covered by title insurance as a result of this clause. By waiving a professional survey, you could be on the hook for newly discovered issues like easements, encroachments or specific property disputes like an incorrectly placed fence or shed by a previous owner. Oftentimes these are discovered during the purchase process, but without a professional survey, they could be missed and become your headache to deal with down the road. 

Fortunately, you can avoid being impacted by the insurance company’s survey exception by having a professional survey conducted during the due diligence stage of the purchase. Yes, it will cost you a little more money up front compared to relying on a previous survey, but you’re saving pennies to risk the farm by skipping one. Have a professional survey conducted and know that any boundary concerns will be fully insured should they eventually come to light. 

There are plenty of hidden clauses like the survey exception in your title insurance policy, so read the contract and lean on professionals throughout the process. The team at Commercial Partners can ensure your best interests are protected as you work towards closing and once you take over as the new owner, so give our team a call today if you’re in the market for a new commercial space. Give us a call at (612) 337-2470 to keep yourself protected as you complete your purchase and acquire title insurance.