Title Commitment Schedule B: Exceptions You Read Before You Sign

This Schedule B exception checklist supports accurate review of title commitment terms before you sign closing paperwork. Schedule B of a title commitment lists all exclusions to the coverage provided by your final title insurance policy, meaning any claims related to these listed items will not be covered if they arise after closing. Missing a critical exception can lead to unexpected out-of-pocket costs, property use restrictions, or legal disputes with third parties in the months and years after you take ownership. Margin Desk developed this resource for independent use alongside guidance from your licensed title professional, as this document does not constitute legal advice and does not modify the terms of any title policy. The checklist table below standardizes review for each core exception category, and can be printed and inserted directly into your closing folder for reference during your final title review:

Schedule B Easement Line Item Review

Easements grant third parties (such as utility companies, adjacent property owners, or local government) the legal right to use specified portions of your property for defined purposes. When reviewing these line items, start by pulling the stamped, up-to-date property survey from your closing folder to trace the exact boundaries of every easement listed on Schedule B. Cross-reference these boundaries with any planned improvements you have for the property, including patio installations, garage expansions, fence builds, or landscaping overhauls, to ensure none of these projects fall within the easement zone. If an easement is marked as unrecorded, you must request a fully executed, recorded copy from the title issuer before signing, as unrecorded easements often have unstated usage terms that can lead to disputes later. Illustrative example: If a 12-foot municipal utility easement runs along the side of your property, you will be required to remove any permanent structures built within that zone if the utility company needs to access lines for repair or replacement, so confirm no existing sheds, fences, or hardscaping currently encroaches on this space. You should also check if the easement allows for periodic access by the holder, as some utility easements require property owners to leave the zone clear of vegetation and temporary structures at all times.

Lien Exception Document Cross-Reference

Liens are legal claims against the property filed by creditors to secure repayment of unpaid debts, and any liens listed as exceptions on Schedule B will remain your responsibility after closing. Start this review by separating lien entries into two groups: liens marked to be paid off at closing, and liens listed as permanent exceptions that will not be resolved before you take ownership. For liens marked for payoff, cross-reference the creditor name, lien recording number, and outstanding balance with the official payoff statement provided by the creditor in your closing folder, to ensure the correct amount will be disbursed at closing to clear the debt. For liens listed as exceptions, confirm you are fully aware of the repayment terms and total outstanding balance, as you will be legally liable for these debts once you take title to the property. Pay special attention to property tax liens, which take priority over all other lien types, and confirm all back property taxes are scheduled to be paid off at closing. If Schedule B includes a general exception for unrecorded mechanic’s liens for work completed by the previous owner in the last 6 months, you can request a mechanic’s lien endorsement to your title policy to cover this risk, if available through your title provider.

Restrictive Covenant Annotation Confirmation

Restrictive covenants are rules established by a subdivision developer or homeowners association (HOA) that dictate how you can use and modify your property, and all enforceable covenants will be listed as exceptions on Schedule B. Start this review by pulling the full, recorded CC&Rs for the property from your closing folder, and match every covenant listed on Schedule B to the corresponding section in the CC&Rs to confirm you have the full text of each restriction. Check for any covenants that conflict with your intended use of the property, including prohibitions on short-term rentals, fence height limits, pet breed restrictions, limits on home-based commercial activity, or requirements for specific exterior paint colors or siding materials. Note that many covenants include financial penalties for violations, so review the fine structure for any restrictions that may apply to your planned use. Illustrative example: If a covenant bans parking recreational vehicles or work trailers on the property for more than 48 hours, confirm this aligns with your lifestyle if you own an RV or operate a trade business that requires a work trailer. You should also check the expiration date for any covenants you find burdensome, as some covenants expire after a set number of years and may not apply for the full duration of your ownership.

Access Right Exception Entry Validation

Access right exceptions define both your legal right to enter and exit the property, and any third-party rights to access the property for specific purposes. Start this review by confirming the property has a formal, recorded public access point to a public road, as properties without public access (known as landlocked properties) require a recorded private access easement across adjacent property to be usable. If a private access easement is listed as an exception, confirm the terms of the easement are clearly documented, including rules for maintenance, cost sharing for repairs, allowed usage hours, and access for emergency vehicles and utility service providers. Vague or unrecorded access rights are a common source of disputes between adjacent property owners, so flag any entries that do not include specific, written terms for immediate clarification with the title issuer. You should also confirm your access rights include the legal right to run utility lines (water, sewer, electricity, internet) across any adjacent property required to connect to public utility systems, as some landlocked properties have access for vehicles but no formal right to install utility lines.

Schedule B Addendum Attachment Verification

Many title commitments include addenda to Schedule B that list additional exceptions not included in the main Schedule B document, often due to last-minute title searches or updated public record disclosures. Start this review by counting the number of addenda referenced on the main Schedule B cover page, and confirm every referenced addendum is included in your closing folder, signed, and dated by the title issuer. Unsigned addenda are not legally binding and will not be reflected in your final title policy, so flag any unsigned addenda for correction immediately. Review each addendum carefully for exceptions that were not disclosed earlier in the closing process, including pending special assessment liens from the HOA or local government, upcoming zoning changes that restrict property use, pending legal claims against the property, or environmental hazard disclosures such as underground storage tanks or flood zone requirements. If an addendum lists an exception that was not disclosed during your inspection period, you may be able to negotiate with the seller to resolve the issue before closing, or exercise your right to terminate the purchase agreement if allowed by your contract terms.

Immediately flag any Schedule B entries that fail your review to your title agent at least 3 business days before your scheduled closing to allow time for document corrections or negotiation with the seller.