By exception, we mean any object or individual excluded from any rule, premise, circumstance or scenario.
There is a specific definition of exception in the real estate or property sector. This is called Title Exception. The meaning of the same is any interest, security, mortgage, lien, pledge, claim, encumbrance, condition, assignment, claim, lease, charge, restriction, conditional sale contract, option, restrictive covenant, right of first refusal, easement (permanent or temporary), exception, encroachment, right-of-way, interest, outstanding claim or overlap, equity, or estate.
As mentioned earlier, the predominant use of exception in real estate is through the exception in deed. This means any of the above-mentioned aspects which are mentioned in the title deed for any property. This means any notation for the title to a property which mentions that specific interests should not be included within the title transfer. This may include everything from parking to easements to resource rights and more. In short, it means anything that is not to be included within a title deed.
That is the basic use of exception in real estate. At the same time, it may also mean the property part/right which is kept for the grantor/transferor. It may also mean the waiver of any requirement in any property related agreement. For example, suppose a lease agreement forbids tenants from keeping pets in the building. However, the landlord makes an exception legally for one of his/her old tenants in this regard. Suppose an exception is legally made by the person transferring the title deed for reserving 10% of the grounds of the property in the pre-specified location for his/her own commercial enterprise. Upon being agreed to by the buyer of the property or the one to whom the title is being transferred, it will become a legal exception that will be followed as a part of the title agreement between the property seller and buyer.
