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Property Specific Deed Exceptions

Property Specific Deed Exceptions. This webcast walks you through an example where this distinction between a general exception deed and a property specific exception deed makes a difference and explains why most Colorado title companies initially prepare a deed form that is inconsistent with the Colorado Real Estate Commission contract.

2/23/18: Property Specific Deed Exceptions. Some general warranty deeds initially prepared by title companies as a scrivener for the brokers have an exception to the grantor’s warranty of title that reads something like: “. . . and except taxes for the year of closing; and except all reservations, rights of way, restrictions and covenants of record.”  Other deeds may have an except that reads something like: “those specific exception described by reference to recorded documents as reflect in the Title Documents accepted by Buyer in accordance with § 8a . . .” These “general exceptions” make the general warranty deed more like a special warranty deed.  (See the following webcast that explains the difference between a general warranty deed and a special warranty deed: General Warranty Deed vs. Special Warranty Deed.) Section 13 of the Colorado Real Estate Commission approved contract calls for a narrower, “property specific exception,” which merely excepts itemized known title blemishes from the grantor’s general warranty. A property specific exception reads something like: “. . . and except taxes for the year of closing; and except for those encumbrances identified on Exhibit A attached hereto” where Exhibit A mirrors the property specific exceptions from the exception section of the title commitment.  Colorado law obligates broker to attempt to have the closing documents prepared consistently with the contract.  This webcast walks you through an example where this distinction between a general exception deed and a property specific exception deed makes a difference and explains why most Colorado title companies initially prepare a deed form that is inconsistent with the Colorado Real Estate Commission contract.    While this webcast may be useful in wetting your appetite for this topic, the following article will decrease misunderstanding: Property Specific Deed Exceptions.