Bulletin: NL000063

Dear Associates:

We have sustained many losses where the policy preparer consults only the title opinion or title commitment in drafting the exceptions for the policies. In such cases the preparer fails to examine the deed and other closing documents used at closing to see whether these documents contain any additional restrictive covenants, easements, mineral exceptions, or other exceptions of any character, etc. The exceptions, restrictive covenants, easements, etc. contained in the closing documents are just as valid as any shown in the commitment or title report and need to be excepted in the title policy which is issued.

These exceptions, like all exceptions, should include a reference to the official location of such documents, including any volume, page, and file number.