By Marc Shaw
When you purchase a piece of real estate, you aren’t just buying the physical structure or the soil; you are buying a “bundle of rights” and a specific legal description of land. To protect that investment, title insurance is standard practice. However, a common misconception among property owners and even some real estate professionals is that a title insurance policy is an all-encompassing safety net for any and all land disputes.
A recent, landmark legal analysis has underscored a critical gap in that safety net: The Survey Exception.
According to a March 12, 2026, analysis by Riker Danzig LLP attorneys Michael R. O’Donnell and Shelley Wu, featured in The Docket (published by the American Land Title Association – ALTA), a U.S. District Court for the Middle District of Pennsylvania decision has sent a clear message to the real estate industry. The court granted a title insurer’s motion to dismiss a coverage claim, validating that standard survey exceptions are legally robust and enforceable.
At World Wide Land Transfer, with a staff full of experts in title insurance in PA, Marc Shaw has always preached on the need for a survey in Pennsylvania. He believes that an informed client is a protected client and has always been perplexed on why it has become a forgotten task in the list of to do’s for a PA purchaser. Below, we break down this case, the legal weight of survey exceptions, and why your next closing should absolutely include an updated property survey.
The core of the dispute in the Middle District of Pennsylvania centered on a property owner who discovered boundary issues after closing. The owner filed a claim with their title insurance provider, expecting the policy to cover the costs of the discrepancy.
However, the title insurer moved to dismiss the claim, pointing to the “Survey Exception” within the policy. This standard clause essentially states that the insurer will not cover “discrepancies, conflicts, or shortages in area” that would have been disclosed by an accurate, up-to-date survey. Because the owner had not obtained a modern survey prior to closing, the court ruled in favor of the insurer.
The Key Takeaways:
Most standard title insurance policies contain a “regional” or “standard” exception regarding surveys. In layman’s terms, the insurance company is saying: “We will insure your ownership of the property as described in the deed, but we aren’t responsible for exactly where the fences, sheds, or property lines sit on the ground unless you hire a professional surveyor to verify them first.”
When a buyer waives the survey, they are essentially accepting the risk of “silent” boundary issues. These issues often include:
As the Pennsylvania court decision highlights, if you don’t get a survey, you are effectively “self-insuring” against these specific risks.
Many buyers, and even some lenders, attempt to save money by relying on “Affidavits of No Change” or old surveys from ten or twenty years ago. This is a dangerous gamble.
Land is a living thing. Fences are replaced, retaining walls are built, and neighbors may inadvertently (or intentionally) extend their landscaping onto a neighboring plot. Legal descriptions in public records are often based on “metes and bounds” descriptions that can be decades or even a century old. While the words on the paper haven’t changed, the physical reality of the land often has.
The Middle District of Pennsylvania ruling confirms that the title insurer’s duty does not extend to these physical discrepancies if the survey exception is in place. The insurer is protected; the buyer is not.
For property owners and lenders, the “Importance of Due Diligence” is the most vital lesson from this case. In a competitive real estate market, there is often pressure to close quickly and minimize costs. However, skipping a survey is a “penny wise, pound foolish” decision.
An updated ALTA survey provides you with a map of exactly what you own. It allows your title agent to “remove” the survey exception from your policy. Once the exception is removed (or “read over”), the title insurance company provides coverage for those very issues the court dismissed in the Pennsylvania case. If a boundary dispute arises later, you are protected.
Lenders have a vested interest in ensuring the collateral for their loan is secure. A boundary dispute can diminish property value and lead to costly litigation. Insisting on an updated survey ensures that the mortgage is secured by the actual footprint of the property the borrower intended to purchase.
At World Wide Land Transfer, Marc Shaw understands that the closing process can be complex. Our goal is to ensure that when you walk away from the closing table, you have the most comprehensive protection possible.
This recent court decision is a sobering reminder of why Shaw advocates for thorough due diligence. Here is how we help our clients navigate these challenges:
The U.S. District Court for the Middle District of Pennsylvania has clarified the law: title insurers are not a substitute for a land surveyor. If you choose to forgo a survey, you are choosing to forgo protection against boundary and encroachment issues.
The analysis by Michael R. O’Donnell and Shelley Wu serves as a timely warning to the real estate community. In an era where property values are at all-time highs, the cost of a professional survey is a small price to pay for the certainty of knowing exactly where your land begins and ends.
Are you preparing for a real estate transaction? Don’t let a “survey exception” leave you vulnerable. Contact World Wide Land Transfer today to discuss your title insurance needs and ensure your investment is fully protected against the unexpected. Contact us today!
