Sunday, May 19th, 2019 May19th2019

Sell for More Trivia: What are title exceptions?

Published on May 19th, 2019

Sell for More Trivia is a weekly blog series that playfully presents a trivia question about commercial real estate.


Title (a.k.a. bundle of ownership rights) to real estate is determined by the entire collection of documents that affect a particular property.

There may be a document recorded on the title (an exception) that limits or prevents certain developer’s actions. This could include use restrictions or access issues.

When a buyer accepts an exception to title, he or she has accepted whatever has been withdrawn from the bundle of rights or whatever burden that exception might be imposing on the property.

During the review of title, the purchaser and their counsel must review all documents that affect the title to the property including easements, deed restrictions, existence of any monetary or other liens, and other matters which may impact the purchaser’s intended use of the property.

Many times, a declaration that is recorded against the property will outline use restrictions and other matters which could greatly affect how a purchaser will use the property after closing.

Easements could be located in areas that make it difficult or risky to build certain structures, for example.

The reason for such thorough review is that title defects can significantly impede your ability to purchase or resell your property. In some cases, banks may even refuse to provide financing for commercial real estate that has a defective title.

Having commercial property title insurance covers most real property as well as the items or fixtures associated with conducting routine business. In most cases, disputes can be avoided by having an attorney thoroughly review a commercial property title insurance contract.


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About Beau Beach, CCIM

Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.

Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.

He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.

Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or