Clearing Title Exceptions and Title Issues in Underwriting
Title exception conditions arise when the title commitment shows an encumbrance, lien, easement, mineral rights issue, or other exception requiring resolut
What Is This Condition?
- Title exceptions are items listed in Schedule B of the title commitment that are excluded from coverage. Lenders review these and may require resolution before closing.
Title exceptions are items listed in Schedule B of the title commitment that are excluded from coverage. Lenders review these and may require resolution before closing.
How to Clear This Condition
- 01Identify specific exception
- 02Determine if exception requires action or explanation
- 03Coordinate with title company
- 04Obtain lender acknowledgment if required
- 05Clear condition
Documents Required to Clear This Condition
- Mineral rights disclosure and lender acknowledgment
- Survey showing easement location
- Lien payoff or subordination agreement
- Judgment release or payoff confirmation
- Explanation of access easement and property use impact
How CTC Handles This Condition
CTC reviews title commitments immediately when received. Mineral rights, easements, and HOA liens are most common in Colorado. We flag these to the LO before they become underwriting conditions.
Frequently Asked Questions
What are the most common title exceptions in Colorado?
Mineral rights severances (very common statewide), utility easements, access easements, HOA liens, and property tax liens.
Do mineral rights need to be resolved before closing?
Usually not — mineral rights severances are common in Colorado and most lenders simply acknowledge them. CTC coordinates this acknowledgment and ensures lender sign-off.
What if a lien appears on title unexpectedly?
Liens (judgment, tax, HOA) must be paid or subordinated before closing. CTC works with the title company to identify payoff amounts and coordinates resolution as part of the closing process.