CRE Title & Survey Glossary

What Is a Schedule B Exception?

In a title commitment, Schedule B lists the specific exceptions to the title insurance coverage — matters the title company will not cover if a claim arises. Common examples include:

• Easements — rights of others to use a portion of the property (e.g., utility lines).
• Restrictive covenants — private agreements that limit how the property can be used.
• Leases or tenancies — existing occupancy rights that might conflict with a new owner's plans.

Lenders must review these carefully to determine whether they impair the property's value or its utility for the intended project.

Common ALTA Survey Red Flags

An ALTA/NSPS survey is a highly detailed survey conducted according to standards set by the American Land Title Association and the National Society of Professional Surveyors. Watch for these red flags:

What Is a Title Commitment?

A title commitment is a contract to issue a title insurance policy. It outlines the current state of the title, identifies the requirements (steps needed to clear title issues, such as paying off existing liens), and sets out the exceptions that will be excluded from the final policy.

What Does “Lender Readiness” Mean?

“Lender readiness” refers to the state in which a borrower has identified, addressed, or insured against all potential title or survey issues to a degree acceptable to their institutional lender. This minimizes closing delays and ensures the loan is secured by a clean, insurable interest.

Why Do Survey Certifications Matter?

Always ensure the survey includes the appropriate certification block for the lender and title company. Missing or incorrectly phrased certifications are a common cause of last-minute documentation delays at closing.