Section II of Schedule B will often contain Special Exceptions as well as the standard exceptions. These are specific exceptions that apply only to the particular parcel of land described in Schedule A. These exceptions cover all the taxes, deeds of trust, easements, restrictions, liens, encumbrances, and defects that the land records show as affecting or afflicting the property. As with the requirements, if multiple parcels are to be insured, you should denote which exceptions apply to which parcels.
These exceptions will generally be carried over and shown as title exceptions in the respective policies. Some, upon their full and absolute payment, release, satisfaction, cancellation, etc., will be deleted from the final policy. If you are aware that an item is to be canceled or released as a part of the particular transaction, that item should appear in Schedule B, Section I as a requirement rather than as an exception. However, you may not always be aware of the intended disposition of every item revealed by the title report or abstract.
- Right of way and easement to MP&L at Book 542, page 123.
- Protective covenants recorded in Book 234, page 125.
- Utility easement to the City of Jackson recorded in Book 154, page 65.