Title Insurance Policy - Standard Exceptions

[vishsh]

What is the name of your state? Michigan

---sorry for the long post below - i did not want to miss out any detail----------

I recently purchased a house in Michigan. The purchase contract had a condition that seller provide me with a clear title without the standard exceptions. Seller accepted the contract and a copy was then sent to their attorney / closing - title agency that was hired to work on issuing the title policy for myself (buyer) and my mortgage bank. Before closing we received a Title commitment paper, that had some exceptions listed on Schedule B. I was concerned about it and so I called the seller's closing agent and they assured that those were just standard language that they used in this type of paperwork. However, I was persistent and asked them to take those out during the closing - since by then - they had received a copy of the mortgage Survey that I had ordered, and also the seller's signed affidavit that they did not know of any issues. I asked the closing agent to give me a "mark up" title commitment that had all the exceptions crossed off - except for our new mortgage that we took out on the house. 4 weeks after closing, I received the actual title policy in mail - and to my shock - schedule B has 9 exceptions listed. The first 6 or 7 of them are the "standard exceptions". The other 2 are due to the fact that the house is a site condo, so those I am fine with. I am concerned as to why the "standard exceptions" are showing on the final policy papers? My question is can I get these exceptions removed by calling the title agency:


(a). Encroachments, overlaps, boundary line disputes, shortages in area, and any other matters that would be disclosed by an accurate survey;

As I mentioned earlier, I had a mortgage survey done and the title agency was given that, so they should have deleted this exception.

(b) easements or claims of easements not shown by the public records and existing water, mineral, oil, and exploration rights;

Seller did sign a form - which was like an affidavit that there are no know issues related to the property ownership. So that should be enough to get this deleted.

(c) restrictions on the use of the premises not shown of record;

same as # b.

(d) dower or homestead rights, if any, of the wife of any individual insured or
any individual shown to be a party in interest.

again, same as # b.

I am not sure why they included these exclusions in the policy, given the details I have shared above. Am I correct that these 4 exceptions should be removed based on the above information?

Thanks for your patience in going through my post, and your help will be greatly appreciated.

Thanks,

- Vishal.

[nextwife]

What did the title company say when you called them to ask?


The Schedule B -D Exception is partially dependent on YOUR actions ((d) dower or homestead rights, if any, of the wife of any individual insured or
any individual shown to be a party in interest., and the title company cannot control whether you have or attain a spouse.

FYI- Residential mark-ups at closing must be pre-arranged. You can't just show up at a closing and presume the closer is authorized or prepared to do a mark-up. A mark up closing also normally carries a fee in many states.)