What this due-diligence check covers
An exception can be harmless, useful or project-changing. The effect depends on the exact recorded language, location and planned use.
Generic labels such as “easement,” “restrictions” or “mineral reservation” are not enough; retrieve the underlying instrument.
Why it matters before closing
A utility easement at the road edge may be manageable, while a conservation restriction through the only building area may destroy the plan. The same category can have very different consequences.
What to verify
- Map each exception against the parcel and proposed improvements.
- Check duration, beneficiaries, permitted activities and amendment rights.
- Look for blanket survey and possession exceptions.
- Confirm whether old documents were released, expired or carried forward.
Red flags that deserve follow-up
- Exceptions with illegible or missing attachments.
- Rights granted to unknown parties over broad areas.
- Restrictions that prohibit the intended structure or business.
- Mineral rights with surface-use privileges.
Evidence to keep in the parcel file
- Recorded exception documents
- Survey showing plottable items
- Title objection correspondence
- Written explanation of non-plottable exceptions
Questions to ask before the deadline
- Which exceptions are plottable on a survey?
- Do any restrictions limit manufactured homes or business use?
- Does any easement cross the building or septic area?
- Are mineral or timber rights reserved?
- Which exceptions will remain in the final policy?