Breaking Down Title Commitments - Schedule B Section II 

09/02/2026 10:20 AM       Mark Goodman

We’re continuing our series that explores the ins and outs of title commitments so that you understand how to secure title insurance for your next commercial purchase. We’ve already covered Schedule A and Schedule B Section I, and today we will break down what Schedule B Section II holds. Buckle up as we explain what Section II of Schedule B entails when it comes to title commitment exceptions. 

Schedule B Section II - Coverage Exceptions 

The second part of Schedule B of a title commitment usually outlines exceptions that will not be covered by your title insurance policy. In most instances, there are some pretty extensive exceptions in place, so it’s imperative that you read through Section II of Schedule B to understand what types of claims would not be covered as it stands. Some common exceptions listed in this section include: 

• Claims of possession not shown in public records 

• Easements not listed in public records 

• Encroachments or boundary line disputes 

• Liens filed after the policy’s effective date 

• Future taxes or special assessments not shown as existing liens 

Section II also outlines what steps you can take to remove some of these exceptions from this policy. You’re not going to be able to remove all these exceptions from your policy, but some will be eligible for removal. For example, easements, encroachments and boundary line disputes can typically be removed as exempted items by conducting an updated land survey. Basically, you’re clearing the existence of these potential issues with a survey, and while it’s possible one issue could slip through the cracks, the insurance company is willing to remove the exception if you take the protective step of ordering an updated land survey. Other aspects, like future tax assessments or an unpaid mechanic’s lien that developed after you became owner, will not be able to be removed, as your actions are the direct cause of their origination, and as such are ineligible for coverage. 

Make sure you read the exceptions section carefully so that you aren’t surprised down the road that a newly discovered title concern isn’t actually covered by your policy. At Commercial Partners, we’ll gladly walk you through Schedule B Section II to ensure you understand what it means and what steps you need to take to remove specific exceptions from the policy. We can also explain how you can secure additional coverage for issues unique to your property should there be any specific concerns or risks you hope to mitigate. 

For more information about any aspect of the title commitment, or for assistance clearing a title during a commercial acquisition, connect with the team at Commercial Partners today at (612) 337-2470.