What are the rules on Generic Exceptions (“garbage” exceptions)?
A generic exception is any overly broad exception that is not a standard or preprinted exception. A generic exception does not refer to a specific recorded document (e.g. Any and all roads, easements, rights of way, etc.). These exceptions are only permitted in cases where the proposed insured on a commitment has made a written request for a policy form that makes use of them. For practical purposes, it is expected that generic exceptions will only be used for such transaction as junior liens or lines of credit. It is anticipated that very few purchase transactions (i.e. owners’ policies) will make use of these exceptions. Aside from the standard or preprinted exceptions, all exceptions on a title commitment or policy must refer to the specific recording information on the document. If a document is not recorded, the title entity should reference any identifiable information on the document. The identifiable information may include dates, names of parties, case numbers, etc.
