If a seller signs an affidavit at closing asserting no improvements have been made in the past 90 days, what may the title policy exclude?

When a seller signs an affidavit at closing asserting that no improvements have been made in the past 90 days, the title policy may exclude non-recorded liens as a result. This is because the affidavit serves as a declaration that the property has not undergone any changes that could potentially lead to additional liens (such as those from contractors or suppliers for unpaid work) in that time frame.

If no improvements have been made, there is a reduced risk of any new non-recorded liens arising on the property. Title insurance typically protects against claims that arise from recorded documents; however, non-recorded liens are not discovered through the public record and, thus, present an increased risk even if they are not directly related to current improvements. In situations like these, the title insurer may choose to exclude coverage for non-recorded liens to mitigate potential claims associated with construction or renovation work that could occur without being officially recorded.

The other choices—insurance claims, recorded easements, and title defects—are generally not excluded based on the seller's affidavit. Insurance claims pertain to matters already covered under the title insurance policy. Recorded easements are public records and would not be impacted by the seller’s affidavit regarding improvements. Title defects refer to issues with ownership or rights associated