What is typically included in a title policy exception related to taxes?

A title policy exception related to taxes includes provisions for liabilities that may affect the property's title. Standby fees and prior assessments are relevant here because they represent charges that have been assessed against the property but may not yet be fully paid or resolved. Title companies typically list these items in the exceptions section to inform the buyer or lender of any outstanding financial obligations tied to the property. These exceptions serve to protect the title company and indicate that the buyer assumes responsibility for these potential liabilities once the transaction is complete.

This is important because the buyer needs to be aware of any existing obligations that could affect ownership. Standby fees may refer to fees levied for services such as fire protection or other municipal services, while prior assessments could indicate past tax charges that haven't been addressed. Including these in a title policy exception ensures transparency in the transaction, helping to avoid future disputes related to unpaid taxes or fees.